Finance for Non Financial Managers

 

Money makes the world go round

No matter what organisation you work for, or the business sector, managers and leaders will need a good grasp of the financial and commercial elements of their role. This can range from 

  • costs associated with a project; through

  • departmental budgets, to 

  • full Profit & Loss (P&L) responsibility.

Knowing the"numbers" is an important part of decision making and this course will provide a strong insight into the key elements for people who do not have a finance background.

The course is structured to cover more advanced topics as students progress through the ILM Programmes and or their careers.

The course is structured across 3 separate yet sequential and related days. The days can be taken individually or together.

 

At the end of each day attendees will understand and be able to apply analysis in the following areas

  • Day 1 - Creating & Setting Departmental Budgets

  • Day 2 - Management Accounts

    • Why they are important

    • What they are used for

  • Day 3 - How do budgets and department results fit into the overall company’s Financial Statement?

Course Objectives

 

Day 1 

Departmental Budgets

The first step and introduction of Finance for Non Financial Managers introduces the fundamentals of financial management and focuses on the key elements required for managing and understanding departmental budgets. It will include :

  • Assumptions – History/trends/future understanding of business requirements

  • Sales or Gross Profit

  • COGS – supplier negotiations (volume discount/rebates)

  • Growth – resources (headcount restrictions)

  • Staff costs (incentives / commissions / bonuses / promotions / training)

  • Expenses / Overheads - Direct & indirect costs

  • Internal support requirements (Marketing/IT)

  • Internal costs to be considered (Transfer Pricing)

  • Capital requirement (Capital Expenditure budget)

  • Cash flow requirements

  • Aligned with Groups vision / Year End expectations

  • Bottom Up - Top Down Approaches

The second day moves onto management accounts and explains why these important and what they are used for. It will include :

 

  • KPI / Key Ratios – what’s important to the overall business

  • Comparisons Y-O- Y (Year on Year)

  • Variances

  • Reporting – visual presentations

  • Do you need to set a 5 year plan?

Day 2

Management Accounts

 

Day 3 

Company Financial Statements

The final day, building on the previous 2, helps attendees understand how budgets and department results fit into the overall company’s Financial Statement. It will include :

 

  • Consolidation to final results

  • Administration adjustments to create a set of Financial Statements

  • Read a set of accounts

    • Understand the basic P&L

    • Balance Sheet

    • Cash Flow

  • Glossary of Terms to help unravel some terms used

  • What do these mean to the shareholders/stakeholders

  • Other types of business structure

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