Finance for Non-Financial Managers

Introduction

This modular webinar series split into 7 bite sized parts, will explore the fundamentals of financial reporting, including accounting concepts.

The webinar will help you to understand profit and loss/net income, cash flow together with risk management and budgeting amongst other areas.

Module 1 - Fundamentals of Financial Reporting

• Course objectives - to provide the technical skill and knowledge for commercial managers to be understand the finances of their organisation
• The key components of accounts - income, expenses, assets, liabilities and equity
• An introduction to the primary financial reporting statements and the key financial performance indicators:
• Net income - measures of profit
• Balance sheet - capital employed and leverage
• Fundamental accounting concepts - accruals v cash based accounting

Module 2 - Cash Flow v Profit and Loss

• What is meant by ‘cash’ and the importance of positive operating cash flows
• Accruals compared with cash accounting with examples including credit sales and purchases and accruals and prepayments
• Other non-cash items such as provisions and depreciation
• Exercise - Converting cash profit to accruals profit

Module 3 - An Introduction to the Balance Sheet

• The purpose of the balance sheet - creditor protection and the impact on reporting assets and liabilities
• Non-current assets and depreciation (amortisation)
• The net current position - working capital and the assessment of liquidity
• Financial leverage and the concept of the ‘cost of capital’

Module 4 - Management of Working Capital

• Introduction and overview - what is meant by the working capital cycle
• Managing inventory - stock holding periods and the concept of effective inventory re-ordering
• Management of receivables - the impact of slow or non-payment
• Management of supplier payment terms (as part of overall working capital management)

Module 5 - Risk Management

• Identifying and reacting to key business risks
• Currency risk and management of foreign currency cash flows - the impact of trading in a foreign currency
• Interest rate risk and the importance to consider the impact of delayed payment terms
• Credit risk - how should this be reflected in the contract pricing

Module 6 - Budgeting and Cost Control

• How to manage a budget
• The different types of budget available such as fixed or flexible budgeting
• Managing a budget and the use of variance analysis to compare actual results to budget
• Cost control techniques
• Identifying costs relevant to a decision and excluding those that are irrelevant
• The different types of cost including; fixed costs, variable costs, and overheads
• The connection between cost control and product and service pricing and managing profitability
• Practical examples and case studies on budgeting and costing methods

Module 7 - Other Issues

• Some other issues to consider:
• Long term contracts and service agreements - how revenues’ costs and profits and reported
• Leasing agreements - impact of capital and operating leases on commercial performance
• Provisions and contingencies - when to recognise a liability?
• Synoptic exercise - review of typical contract and identification off all the key financial issues

This webinar was recorded on 18th May 2021