Fundamentals Of Finance

The course focuses majorly on the framework and fundamental of Finance, Accounting & Budgeting in the perception of how it aligns with the overall business orientation of modern businesses.

Fundamentals of Finance, Accounting & Budgeting

The course focuses majorly on the framework and fundamental of Finance, Accounting & Budgeting in the perception of how it aligns with the overall business orientation of modern businesses.

 

 Delegates will discover how accounting relates as a powerful tool for  information system and communication system used for business decision making processes. Also, this course provides an insight into the essential tools to build    skills required for budgeting. Important elements of this programme include making your budgeting process more efficient & effective.

 

 Objectives

  • Explain basic accounting concepts, terminology, principles, processes and procedures that govern how the financial statements are prepared. and the relevance to a business department.
  • Identify the basic principles used in safeguarding assets and insuring the accuracy of accounting records
  • Understand the difference between accrual and cash basis accounting
  • Know the importance of accounting in running businesses.
  • Understand the accounting cycle.
  • Explain the components of an annual report.
  • Understand how financial information, primarily that provided by the financial statements, can be used to analyze business operations and make economic decisions
  • Effectively prepare balance sheets and income statements.
  • Analyze a set of financial statements to evaluate the business’ financial health.
  • Differentiate the financing options available to a business and situations where each might be used.
  • Explain how to prepare a budget and effectively manage the budgeting process
  • How to implement advanced planning and control techniques into your budgeting process
  • Know how to integrate the budgeting process with the development of the company’s long-term strategic vision
  • Successfully build an integrated planning, budgeting and reporting process
  • Know how to provide a decision support structure that provides timely and useful information to decision makers
  • Apply management tools to the budgeting process that contribute to strategic goals
  • Develop ways to increase profitability and performance through stream lined planning and reporting

Audience

Fundamentals of Finance, Accounting & Budgeting training is designed for wide range of professionals include:

  • All professionals with financial responsibility
  • Managers seeking to develop their understanding of the accounting methods
  • All professionals with planning and budgeting responsibility
  • Anyone with direct planning and budgeting responsibility
  • Professionals responsible for management reporting
  • Corporate governance directors and compliance officials
  • Board level members who wish to develop their understanding of Budgeting &Planning
  • Professionals who are working with financial organizations

Course Outline

Company objectives & Fundamental of Finance & Accounting

    • Measuring company performance
    • Introduction to finance: Terminology
    • Purpose of financial analysis and reporting
    • The finance role in running businesses
    • Accounting terminology
    • Accounting as an Information System
    • The Accounting Equation- what does it mean?
    • Generally Accepted Accounting Principles
    • Understand the nature, purpose and role of accounting
    • The accounting environment
    • Walking through an Annual Report
    • The Role of External Auditor
    • Users of accounting and financial information
    • Fundamental Accounting Concepts Cash versus Profit
    • Profit and profitability
    • Distinguish between accounting and finance

 Financial Statements – Understanding and Analysis

    • Understanding the Financial Statement
      • Balance sheet
      • Profit and loss account (income statement)
      • Cash flow statement
    • Why are ratios useful
    • Horizontal and trend analysis
    • Vertical analysis: common size statements
    • Building blocks analysis and reading through the numbers:
      • Liquidity ratios: ability to settle short-term dues
      • Solvency ratios: ability to settle long-term dues
      • Activity ratios: the ability to manage assets efficiently
      • Profitability ratios
    • Limitations of financial ratio analysis

Management Accounting

  • Decision-Making Technique
    • Cost behavior: fixed, variable, semi-fixed cost
    • Understanding Cost behaviour and types of costs
    • Plan for Cost Reduction and Profit Improvement
    • Costing Approaches – Full Absorption, Marginal, ABC
    • Cost volume profit analysis (CVP)
    • Break-even Analysis
    • Contribution Margin
  • Working Capital Management
    • Definition of working capital and working capital management
    • Working capital management strategies for current assets
    • Balancing profitability and liquidity
    • Working capital management strategies for current liabilities
    • A trade-off between profitability and certainty

Budgeting and the Strategic Management Framework

    • What is the budget?
    • The objectives of budgeting
    • Types of Budgets
    • The budget process
    • The Role of Budgeting
    • How to identify problems and limitation of budgetary control?
    • Approaches to Budget Development
    • Using budgets to manage organizational performance
    • Finance and budgeting teams- role in supporting strategic planning
    • Capital budgeting techniques & Cash Flow
    • Using Activity-based Budgeting
    • Developing the Cash Budget
    • Case study

Advanced Capital Budgeting Evaluation Techniques

    • Business risk and cost of capital
    • Classifying investment projects
    • Analyzing investment and operating cash flows
    • The time value of money concept
    • The required rate of return
    • Net Present Value (NPV)
    • Internal Rate of Return (IRR)
    • Multiple internal rates of return
    • Modified Internal Rate of Return (MIRR)
    • Profitability Index (PI)
    • Payback period and discounted payback period
    • Capital rationing
    • Comparing and evaluating techniques

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