Overview

In today’s business world, you have to have financial savvy! Strong nancial management is crucial to the success of a business and every manager is accountable for the bottom line!

All managers need to know how to justify a budget request, quantify their contributions and identify profit drains immediately.

This workshop for non-financial managers will familiarise you with the key concepts of finance and accounting and help you prepare and manage budgets with confidence


Duration

2 days

Outline



Session 1: Overview of Financial Management
■ Classification of the Financial Information of the Organisation ■ Understanding the Trial Balance

Session 2: Understanding of Financial Statements
■ Cost-Benefit Principle ■ Risk-return Principle ■ Time-value-of-money Principle ■ The Basic Financial Statements ■ Income Statement ■ Drawing Up an Income Statement ■ The Balance Sheet ■ Drawing Up a Balance Sheet ■ Balance Sheet Template ■ The Cash Flow Statement

Session 3: Analysis and interpretation of Financial Statement
■ Profitability Ratios ■ Gross Profit Margin ■ Net Profit Margin ■ Return on Equity ■ Liquidity Ratios ■ Current Ratio ■ Quick (Acid Test) Ratio ■ Activity Ratios ■ Inventory Turnover ■ Debtors Collection Period ■ Creditors Collection Period ■ Total Asset Turnover Ratio ■ Solvency Ratios

Session 4: Budgeting Process
■ Functions of a Budget ■ Planning ■ Control ■ Performance Evaluation ■ Motivation ■ Communication ■ Stages of the Budgeting Process ■ Communicating the details of the budget policy ■ Determination of factors that restrict performance ■ Creating a Budget ■ Preparation of the Sales Budget ■ Initial preparation of the various other budgets ■ Negotiation of budgets with supervisors ■ Co-ordination and review of budgets ■ Final acceptance of the budgets ■ Ongoing review of the budgets ■ Master Budgets and their Components ■ Sales Budget ■ Expenses Budget ■ Cash Budget

Session 5: Forms of Financing
■ Short–Term Financing ■ Trade Credit ■ Bank Credit ■ Bankers Acceptance ■ Factoring ■ Intermediate Financing ■ Term Loans ■ Leases ■ Long-Term Financing ■ Bank Loans ■ Debentures ■ Sources of Equity Financing

Session 6: Capital Budgeting and Managing Working Capital
■ Importance of capital budgeting decision ■ Capital Budgeting Techniques ■ Payback Period ■ Accounting Rate of Return ■ Net Present Value ■ Working Capital ■ Net Working Capital ■ Working Capital Policy ■ Moderate or Maturity Matching Approach ■ The Aggressive Approach ■ The Conservative Approach ■ Working Capital Management ■ Managing Cash ■ Reasons for holding cash ■ Measuring whether the Credit Policy is Effective

SAQA US ID: 252040 - Manage the finances of a unit
SAQA US ID: 242810 -Manage Expenditure against a budget




*Please note that we offer free electronic support to clients on content covered on our courses.