Business Finance for Managers Detailed Outline

 

 

1. An Introduction to Finance

  •  Determining the information needed to successfully run an organisation
  • Identifying how finance and accounting help reduce risk and failure
  • Describing the theory of accounting
  • Using the numbers to manage strategic planning.
  • WORKSHOP - The major causes of business failure and how finance can assist

2. Constructing Financial Statements

  • Identifying the key purposes of the financial statements
  • Describing each of the four key financial statements
  • The Cashflow Statement
  • Profit and Loss Statement
  • The Balance Sheet
  • The Statement of Changes in
  • Equity
  • Examining the connection
  • between the financial statements.
  • WORKSHOP - Preparation of sample financial statements

3.  Interpreting Financial Statements

  • Clarifying why we interpret the financial statements
  • Examining the ways to interpret the financial statements
  • Describing financial ratios and how they assist in interpretation
  • Explaining the key categories of
  • ratios.
  • WORKSHOP - Interpretation of sample financial statements

4. Managing Funds

  • Examining the concept of solvency and the key sources of funds
  • Describing how factoring works – Comparing shorter and longer term financing.
  • Explaining how to increase profit / surplus
  • Vendor / purchaser and public company and private company due diligence.
  • WORKSHOP Due diligence activity

5. Budgeting

  • Planning and controlling – the real reasons for budgeting
  • Examining how we prepare a budget
  • Distinguishing the types of budget – Describing what to do if a budget cannot be achieved – Unrealistic budgets.
  • WORKSHOP How we budget activity

6. Break-even

  • The benefits of analysing the breakeven
  • Distinguishing between fixed, variable and hybrid costs
  • The two key methods of breakeven calculation
  • Using the analysis to make a specific profit or ROI
  • How and when break-even is used in practice.
  • WORKSHOP A break-even analysis example

7. Pricing and Costing

  • Establishing the ‘real cost’ of a product
  • How to price for profit
  • Distinguishing between direct and indirect costs
  • Using absorption and direct costing to your advantage
  • How and when pricing and costing is used in practice
  • WORKSHOP How much should we pay / charge for this widget?

8. Capital Investment Analysis

  • Why capital investment is a strategic decision
  • Distinguishing between Net Present Value (NPV), Internal rate of Return (IRR) and Payback methods
  • How to calculate the discount rate – How and when capital investment is used in practice.
  • WORKSHOP Determining which of projects A and B to chose

9.  Business Cases and Strategic Planning

  • The outsourcing process
  • The key purpose of a business case
  • The benefits of a well-constructed business case
  • The best way to prepare and present a business case
  • Key contracting life cycle financial issues.
  • WORKSHOP ‘The way forward’ – The study of a business in difficulty