This course is aimed at all managers, whateer discipline they may be from. Importantly, it is not trying to make people into
Understand what dries some of the most common errors in business and how to aoid them Breakthrough the language of finance Understand the basic accounting model and its limitations Analyze and interpret financial statements within the context of industry analysis and macroeconomic fundamentals Realize why ‘cash is king’ Apply management accounting tools to business problems Understand the Budget process and forecasting techniques Link financial objecties to strategy
Certification of Completion of Training Course: Finance for Non-Financial Managers by Shanghai Uniersity of Finance & Economics to be issued.
While eery organisation has to subscribe to the Financial Accounting model it is rarely, if eer, a good model to make business decisions from. Simply, the information comes too late and it is limited by certain concepts which will be highlighted. Howeer, as this is the model that is so often used to ealuate business performance it will be discussed in detail so that we can understand how to oercome the limitations. Participants will at the conclusion of the first day hae a framework which can be applied to analyse and interpret any set of financial accounting statements. How we ealuate the performance of companies listed on the Share Market and the most common tools used to identify ‘alue’ will be discussed. We will also understand why ‘Cash is King’ and interpret some commonly used words and acronyms, e.g. EBITDA, ROCE, CFROI, etc While Financial Accounting is compulsory, Management Accounting is not. Howeer, organisations with excellent Management Information Systems hae a significant competitie adantage. A key part of understanding a company’s ‘bottom line’ is to analyse it from a customer perspectie. Customer profitability analysis is an extremely useful tool to add alue to an organisation without necessarily cutting costs. Cutting costs is often a knee jerk reaction when a company comes under pressure. It is seldom sustainable and has the potential to erode the human capital and other intangibles in an organisation. Putting a measurement system in place so these intangibles can be managed is an essential part of modern financial management. Strategic Management Accounting is an eoling discipline that links accounting to the strategy deelopment process in organisations. For example many organisations hae realigned their strategy to address responsible businesses practices. Corporate Social Responsibility was once thought to gie an organisation a competitie adantage. Today it is considered a competitie necessity. For example, charitable donations written off as an expense in the Statement of Financial Performance may in fact be a key alue drier. The course will examine how Value Driers are identified and what benefits they delier. Perhaps the biggest mistake that an established business can make is paying too much for an acquisition, or selling part of the business for too little. The course will discuss the most commonly applied aluation tools. Finally, we will look at the most widely used tools to appraise the Inestment decision. Discounted Cash Flow (DCF) Analysis that works out the Net Present Value of an Inestment (NPV) is an essential tool for managers to appreciate. It is now the most common aluation tool to alue an entire enterprise. How we forecast cash flows and measure the required rate of return (cost of Capital,WACC, IRR) will all be discussed.