To many nonfinancial managers, the world of financial terminology and statements is often unclear … confusing … even downright frustrating. But, the truth is, buried within those numbers are often the answers you need to make smart business decisions.
Understanding and analyzing financial statements and annual reports can be a daunting task for many of us, especially if we are non-finance professionals. We often find ourselves deterred from our attempts to delve into the myriad of information and unfamiliar terms presented in financial statements and their overwhelming details that are separately noted in the annual reports.
That is why we developed this training workshop — to give professionals like you an “edge up” by helping you master the meaning behind the financial statements and terminology you’ve been wrestling with.
Methodology Of The Training Seminar
The content will be delivered in an easy-to-understand way enabling the participants to understand the financial way of seeing things.
Corporate case studies and practical applications will be an integral part of the discussions. The program will be delivered in an open and interactive manner.
Suitability and Applicability
The course is suitable for those in both the private and public sectors from small and medium-sized enterprises to multinational corporations. It is designed for all those who are affected by the ‘finances’ at work. It will enable the participants to go back to their workplace and have a greater ability to ‘read the figures’.
Training Course Outline:
Fundamental Financial Concepts and Terms
Common finance terms
Net present value
And dozens more!
The difference between cash and accrual accounting
What every decision-maker must understand about Generally Accepted Accounting Principles
Understanding the basic elements of a financial statement:
Gains and losses
Basics for determining an organization’s financial health based on financial statements
The Ins and Outs of a Balance Sheet
The balance sheet: A thumbnail sketch of a business
What a balance sheet can — and can’t — tell you about a company
Tangible and intangible
Fixed and liquid
Current liabilities and current assets and equities defined
Critical components of working capital
Interpreting balance-sheet numbers for financial strength — and weakness
Analyzing the Profit and Loss Statement
A P&L by any other name:
Statement of operations
Profit and loss statement
Which numbers indicate how revenue is generated
The “cost of goods” formula and how to use it
Understanding the role that depreciation plays
Comparing a favorable and unfavorable P&L
Examining a P&L statement to determine your business situation
Evaluating Financial Statements
The purpose of the cash flow statement
Analyzing the cash-flow statement to find out where resources are actually going
How to recognize cash-flow problems before it’s too late
Forecasting cash flow — and using this insight when increasing staff, purchasing and cutting costs
Change in equity statement: What it is and how to use it
Annual reports: Where to find the numbers that tell the real story
Other types of financial statements you may encounter
Compute the Financial Ratios Used by Financial Analysts to Assess:
– The Liquidity of a Business – The Profitability of a Business – The Risk of a Business
Critical Financial Measurement Tools and Techniques
Tips for scanning any financial report and zeroing in on the pertinent numbers
Calculating the return on investment (ROI)
Key financial indicators that will tell you if your organization is on the right track
Using break-even analysis, forecasting and other financial tools to make informed decisions
Valuable questions to ask before making any decision based on financial-statement numbers
Important ratios that every nonfinancial manager should understand