Business Financial and Accounting Competencies

Introduction:

To effectively integrate knowledge and skills across multiple disciplines, it is essential to go beyond mastering just one area. This business finance course addresses key issues such as cost accounting, cost management, budgeting, management control, and performance management.

This program will enable participants to understand the interdependencies between business strategy and vision, operational objectives, measures, and targets, and their impact on strategic execution. It also covers advanced techniques in performance measurement and reporting.

A solid understanding of accounting principles is crucial for achieving the objectives of this business finance and accounting course.

Objectives:

By the end of this business finance training, participants will be able to:

• Grasp the terminology used in finance and accounting to enhance business comprehension.
• Assess the budgeting process and its significance in decision-making.
• Connect strategy with costing and performance evaluation.
• Understand basic costing and budgeting concepts in business and financial management.
• Identify and calculate the full costs of goods and services provided.
• Apply both conventional methods and recent best practices in finance.
• Integrate financial and operational aspects for effective planning and strategy implementation.
• Develop a well-structured performance measurement system.
• Enhance knowledge of cost management and budgeting concepts.
• Create appropriate and effective budgets.
• Evaluate the effectiveness of costing practices in measuring and maintaining profitability.
• Link budgeting with the execution of strategic plans to improve decision-making.
• Deepen understanding of how financial matters intertwine with operations.

Training Methodology:

• Financial modeling workshops
• Scenario simulations
• Horizontal diffusion with feedback
• Role-playing activities
• Case studies
• Seminars with guest experts

Course Outline:

Unit 1: Management and Financial Accounting: Key Concepts and Terminology

• Differences and similarities between financial and management accounting
• Functions of management accountants in an organization
• Connecting strategy to plans and costs
• The importance of budgeting and cost management today
• Adopting a process perspective that transcends functional boundaries
• Linking processes to financial and non-financial parameters
• Overview of key financial statements

Unit 2: Cost Analysis

• Understanding costs and cost terminology
• Different types, uses, and purposes of costs
• Cost-volume-profit analysis: fixed vs. variable costs
• Contribution analysis
• Production vs. non-production costs
• Period costs vs. product costs: measuring and controlling inventory

Unit 3: Traditional vs. Advanced Techniques in Cost-Control

• Undercosting and overcosting: impacts on profit
• Refining costing systems
• Direct vs. indirect costs
• Comparative study: traditional costing systems vs. activity-based costing
• Levels of cost and cost determinants
• Linking resources, activities, and management
• Activity-based budgeting and management: a new paradigm

Unit 4: Flexible Budgets and Variance Analysis

• The need for budgeting
• Master budget: definition and realistic application
• Static vs. flexible budgets: similarities and differences
• Computing flexible-budget and sales-volume variances
• Budgeting and its effects on behavior
• Organizational budgeting: tools and methods

Unit 5: Measuring Corporate Performance

• Balanced Scorecards and Six Sigma
• Extended performance measurement systems
• Business improvement techniques focused on customer satisfaction
• Addressing financial and non-financial issues beyond budgeting
• Balanced Scorecards: a case study
• Key perspectives and strategy maps
• Introduction to Six Sigma

Advancing Financial and Nonfinancial Performance for Managers without Financial Responsibility

This introductory course in finance is designed for individuals who are not directly responsible for financial management. The business finance accounting course bridges gaps in finance and accounting knowledge for nonfinancial managers, equipping them with the skills to interpret financial statements, control budgets, and analyze various dimensions of financial information. Participants will gain comprehensive knowledge of business finance and accounting, essential for identifying and analyzing strategic objectives, managing business units, or engaging with stakeholders in financial matters.