Finance For Non-Financial Managers

Who should attend this Training Course:

  • Managers holding non-finance roles in the organisation but whose job description requires budgetary management and delivery of KPI’s (Key Performance Indicators).
  • Managers who want to gain a greater insight into how the accounting results are compiled but who do not need detailed training in finance.
  • Manager/Executives with a reporting remit to the Board.
    Other staff whose activities directly impact the revenue generation or cost incurrence of the organisation and who therefore need to understand ramifications of their actions.

Learning Outcomes (Upon completion of this course, you will be able to):

  • Understand the role that management accounting as an internal resource plays in the organisation and how it can be of greater service to internal customers (stakeholders)
  • Understand the purpose and interpretation of key management reports, P & L, balance sheet and cash flow
  • Gain greater understanding as to how KPI’s are compiled and therefore the dynamics underlying these.
  • Understanding forecasting and the report loop it engenders back into the management accounting process.

Course Outline:

1. Role of Finance Department in your organisation

Bookkeeping in brief, basic concepts, books of account culminating in the trial balance.

2. Management Accounts

Information from Data; converting the trial balance to P & L and Balance Sheet and the meanings behind both. What is the cash flow and why it is the link between P & L and Balance Sheet.

3. Ratios and KPI’s to summarise the past

  • The need for and use of ratios – eliminate scale issues in comparison between entities.
  • Typical ‘off the shelf’ ratios – why use these. Calculation through worked examples
  • Developing your own organisation’s KPI’s and whether these are most suitable for reporting needs. Worked examples on these.
  • Presentation of ratios and KPI’s to different audiences and varying presentations required (Board, cross functional management team, staff information sharing session etc.) again including worked example.
  • Benchmarking of KPI’s.

4. Can the Future be predicted

Rolling forecasting for the medium term

  • Budgets and rolling forecasts and the differences between them.
  • Using the last actual P & L and Balance Sheet to forecast into the medium term.
  • Examples of assumptions needed and how to treat them
  • Final forecasted reports at various levels

5. Putting it all together and going forward

  • Comparison of actual vs forecasted in P & L and balance sheet, derivation of variances and interpretation.
  • Deriving KPI’s for actual and budgeted and possible variance interpretation and actions needed etc.
  • The reporting loop for going forward into the future.

Materials and Information we need

  • Materials: PowerPoint Presentation – Handouts provided to all participants. Handouts will include pdf’s of examples used.
  • Information we need: If you can provide us with any of your operational manuals, sample reports, policies etc, we can tailor the course more to your needs.

Other Training for your Board

We also provide training tailored for your Board, in Governance and in Strategic Planning and deliver the course at a time and at a venue that suits you. Please contact us with any enquiries.