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Financial Awareness

Overview:

Introduction:

Our financial fluency courses dispel the myths of finance and are a great introduction to the financial accounting world.
Our seven-step path to financial awareness and understanding gives an illustration of the type of financial awareness training courses we deliver. We select the most relevant content and tailor it to your business.

Course Objectives:

At the end of this course the participants will be able to:

  • Discover where a business gets its money from.
  • Find out what a business does with its money.
  • Appreciate the need to record, analyze, and summarise business transactions.
  • Figure out what the finance department does.
  • Identify essential business financial systems.
  • Check financial controls are in place.
  • Know the difference between financial and management accounting.
  • Produce quality management information.

Targeted Audience:

  • Marketing Managers
  • HR Managers
  • Sales Managers
  • IT Managers
  • Regulatory Managers
  • Safety Managers
  • Project Managers
  • Procurement Managers
  • Business Development Managers

Course Outlines:

Unit 1: Get to Grips With Accounting Fundamentals:

It's important to know basic financial terminology and concepts and to be familiar with the main financial statements produced by a business.

  • Make sense of accounting jargon.
  • Discover why not to use cash accounting' and why timing is essential.
  • Watch out for hidden accounting costs.
  • The basics of debits and credits.
  • Discover what all the accounting books are used.
  • Understand balance sheets.
  • Understand profit and loss accounts.
  • Understand cash flow statements.
  • Know who uses financial statements and why.
  • Be aware of accounting regulations and laws.

Unit 2: Know What Makes a Profit:

Profit is the raison d'être for most businesses. Knowing how to make and increase profit is one of the key ingredients for business success.

  • Know the importance of price and its relationship to volume &revenue.
  • Realize that not all costs are the same.
  • Understand how gross margins work.
  • Appreciate the difference between gross and net margins.
  • Work out the breakeven point and margin of safety.
  • Be aware of tax consequences.

Unit 3: Manage The Cash:

Profit is sanity but cash is reality. Without cash, a business can not survive for long. Effective cash management will help a business to endure.

  • Understand why cash is king.
  • Find out where all the cash has gone.
  • Know how to generate cash from stock management.
  • Know how to generate cash from customers.
  • Know how to generate cash from suppliers.
  • Be able to prepare and use a cash flow forecast.

Unit 4: Prepare and Use a Financial Budget as Part of Your Planning:

Many businesses invest considerable time in budgeting but few do it successfully. Some simple and practical tips can improve the process.

  • Know the basics of budgeting.
  • Find the principal budget factor.
  • Chose the best way to budget.
  • Use forecasting techniques to form the budget.
  • Watch out for issues when setting budgets.
  • Watch out for issues when monitoring budgets.
  • Calculate variances from the budget.
  • Explore alternatives to budgeting.

Unit 5: Evaluate Opportunities Financially:

Businesses should use established techniques to help decide whether or not to commit time, resources, and money to investment opportunities.

  • Only consider the relevant costs for decision making.
  • Work out if a business opportunity pays back.
  • Calculate the return on the investment.
  • Understand the time value of money.
  • Use established Investment Appraisal techniques.
  • Build a financially sound business plan.

Unit 6: Measure the Performance of The Business:

A successful business can be judged by the size of its market value. Its performance can be measured by using financial ratios.

  • Understand what constitutes success.
  • Analyze return on investment.
  • Analyze short term solvency.
  • Analyze gearing ratios.
  • Analyze measures investor ratios.
  • Be aware of the drawbacks of performance measures.

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