The Goals:
This course will help you learn how to:
- Relate accounting & finance.
- Analyse financial statements.
- Make better capital budgeting decisions.
- Use working capital more wisely.
- Structure the firm’s leverage to optimize the shareholder return.
The Process:
This workshop will be highly interactive & participatory. Your seminar leader will present, guide and facilitate learning, using a range of methods including discussions, real world examples and case studies. Where appropriate, these will include real issues brought to the workshop by delegates. Lessons learned from the seminar can be applied to your own organization immediately.
The Benefits:
- An improved appreciation for the use of finance to make better operating decisions.
- Reduced inter-functional battles over budget allocation.
- The ability to speak directly with Finance to obtain the resources need to hit targets.
- Increased skill set in all phases of finance.
- Greater ability to use financial information to control positive outcomes.
The Results:
By successfully completing this course, delegates will be able to:
- Use financial statements to make a more positive impact on the organisation.
- Make better decisions with Finance.
- Maintain better control of resource use.
- Build superior budgets that get approved.
- Be able to analyse variances from goals accurately & quickly.
The Core Competencies:
Delegates will gain in the following competencies as a result of the program:
- Understanding financial statements.
- Understand how to optimize decisions through analysis.
- Use leverage to optimize growth.
- Analyse capital projects using multiple tools for better results.
- Become comfortable conversing on all finance subjects.
Day 1: Introduction to Accounting & Finance
- What is Accounting and what is Finance?
- How does Finance differ from Accounting?
- What are the differences between Financial Accounting and Management Accounting?
- Your impact on financial statements.
- Planning, forecasting and budgeting.
Day 2: Financial statements & their critical elements
- Balance Sheet, Income Statement and Cash Flow Statement.
- Non-Cash Deductions & its Impact.
- Depreciation vs. Amortization vs. Depletion.
- Book Value vs. Market Value.
- Understanding the shareholders expectation.
Day 3: What is Working Capital – liquidity or bankruptcy
- Components of WC, Cash, Accounts receivable, Inventory and Accounts payable.
- What is the right amount of WC & why?
- The critical ratios to compute.
- Other WC tools like accounts receivable & payable agings.
- Why credit policies & collection procedures matter.
Day 4: Capital Structure – What it is & why it is important?
- Equity capital - what it is & why it impacts our decisions.
- Debt capital – what is it really & how it impacts the required rate of return.
- Weighted Cost of Capital (WACC) – why it is so important.
- Calculating your WACC: when & how to use it.
- Leverage: two-edged sword – defined.
Day 5: CAPEX -Analysis of Investment Decisions with What-if Risks
- Cash Flows and the Time Value of Money.
- Discuss the capital project evaluation process.
- Estimating cash flows over the useful life of the project.
- Net present value (NPV) & Internal Rate of Return (IRR) as preferred methods.
- Profitability Index (PI) & Modified Internal Rate of Return (MIRR) as reasonable alternatives.
Language: English.
Place: London – UK.
Venue (TBC): Radisson Edwardian Sussex Hotel (Address: 19-25 Granville Place, Marylebone, London W1H 6PA – UK).