Course description
Financial communication occurs as a part of public relations and is aimed at present and potential shareholders and investors. The purpose of this form of communication is to support and above all to strengthen the company's stock market value and prospects, but also its credibility to shareholders and investors.
This is important because key personnel in an organization use accounting information which is often said the ‘language of business’; hence it is essential to understand and to be able to use this language.
This course will introduce you to the language of accounting and financial business, financial communication and decision-making. It will provide a comprehensive illustration of how accounting information is collected, recorded, how it is analyzed and presented both internally and externally, to support effective management, control, and decision making.
Upcoming start dates
Suitability - Who should attend?
This Accounting , Financial Communication and Decision Making Course ideal for:
- Operations
- Technical
- Administration
- Procurement
- Planning
- Sales & marketing
- Research & Development
- Senior staff members of any department
- Consultants who provide advice on systems and operations
- Members of operational management team
Outcome / Qualification etc.
By the end of this Accounting , Financial Communication and Decision Making Training, participants will be able to:
- Communicate and question financial data effectively
- Illuminate the difference between profit and cash flow
- Prepare income statement, statement of financial position and cash flow statement
- Recognise the content of and relationships between financial statements (income statement, balance sheet, and statement of cash flow)
- Recognise discounted cash flow methods and their application to financial decision making
- Deduce cost performance and its impact on product costing
Training Course Content
Day 1
An introduction to Accounting
- What is accounting?
- What forms can accounting take
- Definition and importance of profit
- Decision scenarios explored
- Funding business operations
- Who is interested in profit?
- Cash vs. Accrual accounting
- Cash flow forecasting and improvement
- The significance of accounting data
- The job of the Finance Function
- The accounting equation and financial related accounting systems.
- Reporting facts and applying judgment.
- Preparing the Income Statement and Balance Sheet.
- Accounting standards and bookkeeping benchmarks.
Day 2
Financial Statements, Accounting Policies, and Reporting Standards-Income Statement – Basic Components
- Revenues & the questions
- Direct/variable/product costs
- Indirect/fixed/period costs
- Mixed costs
- Non-cash deductions: the what, the why & the how
- Depreciation: various methods explored
- Amortization: impairment test
- Depletion: when & how
- The difference between profit and cash
- A closer look at costs and expenses
- Profit calculations
- Summarizing profit statements and extracting the key figures
Balance Sheet:
- Assets – current & long term
- Liabilities – current & long term
- Equity – components
- Capital employed - options
- Managing the working capital cycle
Cash Flow Statement:
- Operating sources/uses
- Investing sources/uses
- Financing sources/uses
Day 3
Making and Communicating Decisions Using Budgets
- The master budget
- The budgeting as a planning tool, a control mechanism, a communications device & value creation
- Budgeting Sales to “drive” the correct budget
- Operating budget components
- Financial budget
- Pro Forma Financial Statements
- Cash Budgets
- Capital budget
- Interrelationship of Financial Projections
- Dynamics and Growth of the Business System – a model review
- Flexible vs. traditional budgets – the pros & cons
- Variance analysis as a tool for improvement & communications
- Price and volume effects within variance analysis: state of the art
Day 4
Financial VS Management Accounting: Differences and Similarities
- Objectives of Managerial Accounting
- Managerial Versus Financial Accounting:
- Role of the Managerial Accountant
- Financial accounting: what we show to the public
- Objectives of financial accounting
- Role of financial accountant
- Cost terminology: variable, fixed, controllable, non-controllable, incremental, sunk, opportunity, and relevant
- Cost behaviors in Cost-Volume-Profit scenarios: contribution margin and fixed costs
- Breakeven and targeted net income scenarios
- Cost/Benefit analysis
Day 5
Ultimatum Goal of Planning – Valuation, Business Performance & Decision Making
- Definitions of Value
- Responsibility centers: cost, profit, and investment
- Measuring responsibility center performance
- Segment reporting internally and externally
- Business Valuation from multiple perspectives
- Managing for Shareholder Value
- Shareholder Value Creation in Perspective
- Evolution of Value-Based Methodologies in planning and budgeting
- Creating Value in Restructuring and Combinations beyond planning and reporting- the case for real change!
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