DEFINE | Management Consultancy & Training

BUDGETING FOR NON-FINANCE FUNCTIONAL AREAS – ADVANCED

Location

London, UK

Date

From Date: 04-Mar-2024
To Date: 08-Mar-2024

Duration

5 Days

Language

English

Discipline

ACCOUNTING, FINANCE

Introduction

The program enables professionals, particularly those in functional areas other than finance such as sales, marketing, human resources, research and development, production, and procurement. The course will help them gain an extensive working knowledge of critical financial principles in an easy-to-understand format, allowing them to make critical business decisions involving cost-savings, budgets, new project decisions, growth strategies, and so on. Participants can comprehend and analyze financial statements, as well as understand the foundations of finance and accounting

Objective

Decode balance sheets, income statements, and cash flow statements.
Learn to create and manage budgets to achieve organizational goals.
Grasp cost structures and methods for effective cost control.
Gain insights into making informed decisions for the organization’s financial health.
Identify and mitigate financial risks to safeguard the company’s interests.
Evaluate investment opportunities and make strategic financial decisions.
Develop skills to analyze financial data for performance evaluation.
Understand the importance of managing cash flow for organizational stability.
Plan for long-term financial sustainability and growth.
Enhance the ability to communicate effectively with finance teams and stakeholders.

Audience

Non-Financial Managers: Professionals from various departments seeking to enhance their financial acumen.
Entrepreneurs and Business Owners: Individuals managing their own businesses who want a better grasp of financial concepts.
Project Managers: Those responsible for project budgets and financial aspects.
Department Heads: Leaders overseeing departments, looking to align financial strategies with operational goals.
Marketing and Sales Professionals: Individuals aiming to understand the financial impact of marketing and sales decisions.
Human Resources Managers: HR professionals interested in linking HR strategies to financial outcomes.
Start-up Founders: Individuals launching or managing start-ups who need financial knowledge for business success.
Anyone Seeking Career Advancement: Professionals wanting to stand out and advance their careers by adding financial expertise to their skill set.

Content

Analysis of Financial Statements

Why ratios are useful
Horizontal and trend analysis
Vertical analysis: Common size statements
Building blocks analysis and reading through the numbers:
Liquidity ratios: Ability to settle short-term dues
Solvency ratios: Ability to settle long-term dues
Activity ratios: Ability to manage assets efficiently
Profitability ratios
Limitations of financial ratio analysis
Working capital management
Definition of working capital and working capital management
Various working capital management strategies

The Key Financial Statements

Understanding the accounting cycle
The five main accounts in financial statements
Income statement: A tool for performance measurement
Accrual basis versus cash basis
Balance sheet: A tool for financial position
The balanced status
Statement of owners’ equity
Statement of cash flows: Why cash is king
Wrapping-up: The cycle of financial statements
External and internal auditors’ responsibilities

Operating Budget Process and Techniques

The meaning of an operating budget
Steps to budget development
Master budget components
Sales forecasting
Approaches to budgeting
Incremental budgeting
Zero-based budgeting
Budgetary control and correction

Capital Budgeting: The Investing Decisions

Examples of exercises involving capital budgeting
exercise
Time value of money: A prerequisite for investing
decisions
Required rate of return for investments (RRRI)
Examples of cash outflows for capital projects
Examples of cash inflows for projects
Net Present Value (NPV) calculation
Internal Rate of Return (IRR)

Cost Behavior Concepts and Breakeven Analysis

Defining fixed costs
Defining variable costs
Contribution margin
Computing breakeven point
Sensitivity analysis

Certificate

Define Management Consultancy & Training Certificate of course completion will be issued to all attendees.

Methodology

The training course will be highly participatory and the course leader will present, guide and facilitate learning, using a range of methods including formal presentation, discussions, sector-specific case studies and exercises. Above all, the course leader will make extensive use of real-life case examples in which he has been personally involved. You will also be encouraged to raise your own questions and to share in the development of the right answers using your own analysis and experiences. Tests of multiple-choice type will be made available on daily basis to examine the effectiveness of delivering the course.

30% Lectures
30% Workshops and work presentation
20% Case studies & Practical Exercises
10% Role Play
10% Videos, Software or Simulators (as applicable) & General Discussions

Case Studies, Group Discussions, Last Day Review, Assessments will be carried out.

Course Details