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Financial Management for Non-Financial Executives


There is a greater need to understand financial information, particularly the balance sheet, profit and loss account and cash flow statement as companies strive to enhance their shareholder value. Decisions made without properly understanding the financial implications may lead to reduced profits (or even losses) and a reduction in shareholder value. By raising financial awareness, participants are better able to manage businesses’ revenues, costs, profits and cash. The Finance for Non-Financial Managers course empowers learners to effectively communicate with accounts and finance people and to better understand the financial aspects of business decisions. It is generally agreed in business that financial skills are indispensable for the success of businesses and individuals, thus it becomes imperative that these skills and financial knowledge must be a prerequisite for everyone who is involved in the financial growth and proper management of the organization.

This programme will provide cross functional knowledge and grounding on the most recent trends in financial reporting to non-financial executives in a pragmatic manner. The lack of basic fiscal and financial management is a major source of inefficiencies and wasteful expenditure and this course will go a long way towards helping in solving this problem by developing and transferring skills to non-financial managers in our country. Over the course of the program, participants will work through a series of modules that move from understanding basic financial principles to applying financial analysis and ratios to drive decisions.

The programme is divided into five modules and each module is capped with an ending self-evaluation to ensure that participants have absorbed the essential learning outcomes. 

Course contents


Unit

Objectives

Unit 01

Financial statements

1.1 Overview of the Finance Principles

1.2 The Four Financial Statements

1.3 The Practice of Accounting

 

i- Understand the main components of a typical set of financial statements or annual report

ii- Appreciate the key underlying accounting concepts used in the preparation of financial statements

 

Unit 02

Business Analysis

2.1 Liquidity Ratios

2.2 Asset, Profitability, and Debt Ratios

2.3 Earnings and Dividend Policy

 

i- Know how to interpret financial statements and analyse businesses using financial ratios

ii-  Perform a SWOT analysis using financial statements

 

Unit 03

Costing

3.1 Costing Methods

3.2 Cost Allocation

3.3 Break-Even Analysis

3.4 Pricing

 

i-  Know the different categories of costs which exist and their implication on costing

ii-  Understand costing concepts, and apply them in making business decisions

 

Unit 04

Cash Operating Cycle

4.1 Working capital management

4.2 Cash Operating Cycle

 

i-  Understand the cash operating cycle and what affects a company’s cash flow

ii-  Manage the cash operating cycle

 

Unit 05

Investment Appraisal Tools

5.1 Valuation Methods

5.2 NPV and IRR

5.3 Bond, Equity and Firm Valuation

 

i-  Understand the payback period, net present value and internal rate of return methods of project appraisal in decision-making

ii-  Understand briefly the concepts of shareholder value, gearing and weighted average cost of capital

 


The program will train participants on how to make financial decisions and how these affect the performance of theirunit's profitability and the organization. Upon completion of this course, participants will have gained general financial knowledge and an in-depth understanding of the impact of their decisions outside their functional area. This sessions will be interactive and will require the active involvement of the participants in finance related activities.At the end of this programme, participants should be able to:

  • Plan more effectively as to take the financial impact of your decisions into consideration;
  • Identify what causes and drives costs;
  • Gain insight into working capital management;
  • Apply key ratios and performance measures;
  • Understand growth, cash-flow and profitability considerations;
  • Implement the concept of contribution and marginal costing;
  • Calculate discounted cash-flow and capital costs; and

Comprehend the principles of valuation and value creation from an economic