Finance for Non-Finance Managers Training - 1 Day

Finance Principles and Language

• Exploring the main financial principles and how they guide finance thinking.
• Going over the various terms and definitions of finance and to bring more clarity around the terms used.

Understanding Financial Statements

• Identifying the main financial statements used to report financial performance.
• How the three statements are related, what they include and why.

The Balance Sheet

• What is being shown and at what point in time?
• Identifying the different types of assets and liabilities that appear on a balance sheet.
• Recognise the value of understanding a balance sheet.

The Profit and Loss Account

• Defining income and matching expenditure for a specific period of time.
• Exploring the various profits there are and why we have them.
• Looking at what the profit and loss account is and is not.
• Recognising the importance of cost and benefit and the role it plays in decision-making.

Cash Flow

• Recognising the role and importance of cash in a business.
• Exploring the difference between cash and profit.
• Identifying non-cash elements of expenditure.
• The difference between profit and cash

Accruals and Prepayments

• When to recognise accruals and why finance keeps talking about them.
• Exploring how prepayments differ from accruals

Different types of costs

• Distinguish between the different types of costs on the profit and loss account.
• Learn how to classify costs to generate the various types of profit.

Ratios

• What they are and what they mean.
• Going over the ratios that help with analysis and, in particular, decision-making.
• Ratios to be explored are in the areas of: Profitability, liquidity and productivity.

Financial and management accounts

• Breakdown of the annual statements and what is contained within them.
• Understanding the difference between financial and management accounts and why both are important.