Course Introduction
Course Introduction:
Business entrepreneurs, CEOs, Executives and Managers should have a sound knowledge on key parameters of financial management to take best business decision impacting strong financial health of the organization. Without having a proper understanding many ‘non-financial’ managers took some wrong decisions resulting negative consequences for the business unit & organization. Every CEO / executives / managers should have a greater understanding of the finances which ultimately help to take the right decision in management & success of the organization. A manager should have accounting skills, budgeting skills, financial ratio analysis, financial statement interpretation and then be able to combine all those skills to make sensible and well-informed business decisions. In essence, non-financial managers need to acquire the financial skills that empower them to exhibit better all-round business acumen.
This finance for non-finance manager will introduce the key concepts of finance that contribute to the success of the business.
OBJECTIVES:
The course aims to provide non-finance professionals with a foundational understanding of key financial concepts, tools, and principles, enabling them to make informed decisions, communicate effectively with financial teams, and enhance their overall business acumen.
METHODOLOGY:
• Interactive Lectures
• Hands-on Exercises
• Case Studies and Group Discussions
EXPECTED OUTCOME:
It is expected that by the end of the course, the participants will be able to:
• gain insights into financial statements
• understand the importance and use of financial analysis and the key metrics
• strengthen their knowledge of budgeting and controlling
• build an understanding of the different financial tools and software
• develop an in-depth knowledge of capital budgeting and investment analysis
• learn the different financial costing methods and profitability analysis
Module 1: Understanding Financial Basics
- Key Financial Terminology
- The Key Financial Statements
Accounting Cycle
Income Statement (Profit & Loss Statement) Key components and their significance
Accrual basis vs cash basis
Balance Sheet: How to read and interpret
Cash Flow Statement: Importance in business operations
The cycle of financial statements
Module 2: Financial Analysis and Key Metrics
- Importance and Use of Financial Ratios
- Ratio Analysis
Liquidity Ratios (Current Ratio, Quick Ratio)
Profitability Ratios (Gross Profit Margin, Net Profit Margin)
Efficiency Ratios (Asset Turnover, Inventory Turnover)
Leverage Ratios (Debt-to-Equity Ratio)
Solvency Ratios
Activity Ratios
Limitation of financial ratio analysis
- Return on Investment (ROI) and it’s Application
- Interpreting Financial Data for Business Decisions
Module 3: Budgeting and Controlling
What is Budgeting? Importance of Budget in Business
Budget and Strategy
Budgeting Process and Best Practices
Different Budgeting Approaches
Module 4: Financial Tools and Software
Overview of Financial Software
Key Functions in Excel for Financial Analysis (Functions, Pivot Tables, Graphs)
Practical Use (Budgeting, Forecasting, Modeling)
Financial Modelling and Simulations
Module 5: Capital Budgeting and Investment Analysis
Introduction to Capital Budgeting: Concepts and its’ Importance
Time value of money: A pre-requisite for investment decisions
The Cost of Capital
Tools for Capital Budgeting
Non-discounted Cash Flow Techniques
Payback Period
Return on Investment
Discounted Cash Flow Techniques
Net Present Value (NPV)
Internal Rate of Return (IRR)
Modified Internal Rate of Return
Benefit-Cost Ratio or Profitability Index
Discounted Payback Period
Comparisons Between Discounted Cash Flow Techniques
NPV Profiles and Conflicting Rankings
Module 6: Costing Methods and Profitability Analysis
Direct Costs vs. Indirect Costs
Fixed vs. Variable Costs
Costing Methods:
Absorption Costing
Marginal Costing
Activity-based Costing (ABC)
Profitability Analysis: How to assess the profitability of a product/ service
Module 7: Study Visit
Target Audience:
The course is primarily designed for business owners, entrepreneurs, non-finance managers / executives and who wants to learn about finance. It will help the executives to take the right decision with sound knowledge on important organization financial management topics.
