BASIC FINANCE ESSENTIAL

INTRODUCTION FOR BASIC FINANCE ESSENTIA

By acquiring such skills, it will enable them to better understand and analyses financials statements apply financial management concepts. This programme will increase financial management which enhance business acumen.

Who should attend

  • Participants who had no formal training in accounting & finance but wish to understand essentials of finance terminologies and good financial management

COURSE OBJECTIVES

On completion of the programme, participants will be able to:

  • Understand the concepts, language and basic rules of accounting & finance.
  • Identify key financial concerns via simple analysis of financial statements.
  • Understand how to analyse and evaluate key financial indicators in view to contribute towards improving organisation’s performance
  • Equip oneself with knowledge in order to effectively manage financials in a business organisation
  • Understand the proper annual budgets and finance forecast process

COURSE CONTENT

Building Financial Knowledge

  • Financial Terminology
  • Practical understanding of practical finance and accounting concepts

Understanding financial statements

  • Understand and interpret financial key numbers in the financial statements: Profit & Loss, Cash Flow, Balance Sheet.
  • Managing profitability using Profit and Loss statement using
    • Margin analysis
    • Cost and Expense analysis
  • Evaluation business viability and feasibility through analysis of
    • Return of Investment (ROI), Gearing (leverage) & liquidity ratios
  • Learn the golden rule of financial management
    • Working capital management applications
    • Explore reasons rich companies get richer?
    • Cash versus profit measures

Costing & Basic Budgeting process

  • Cost element classification
  • Value Costing for decision making.
  • Costing methods and structure
  • Identify firm’s cost drivers for cost reduction.
  • Different types of cost – fixed, variable
  • Breakeven and contribution analysis

Management reporting: Variance Analysis

  • Understanding essentials of variance analysis & how variances are calculated.

Prepare action plan to mitigate and bridge the variances.

  • Sample case study interpretation exercise
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