Overview

Knowing basic financial principles is critical to success in any job or level of an organization. This course will help you transform financial and accounting concepts into decision-making tools that can be used successfully every day. You will learn how to apply the fundamentals of financial management to improve budget management, increase potential profits, and evaluate the financial performance of your business.

You will also understand the terminology used by accounting and finance professionals, and you will feel more confident when dealing with them. This course will help you do your job better and prepare you for senior management positions where financial awareness is critical

Methodology

This course uses a combination of interactive training techniques such as brief presentations, case studies and group exercises to apply the acquired knowledge

Course Objectives

At the end of the course, participants will be able to

Identify the four main financial statements: balance sheet, income statement, cash flows and changes in equity, in addition to key financial terms used in organizations such as profit and profit margin

Analyze the financial position of organizations and departments and use financial information for management and evaluation

Distinguish between accounting and financial management and clarify the role of financial management in business management

Prepare the operating budget and link it to the strategic objectives of the organization

Apply capital budgeting techniques and cost-volume-profit analysis to enhance the decision-making process

Target groups

Managers, supervisors and employees who wish to enhance their knowledge of financial information

Target competencies

Understanding financial statements

Financial analysis

Working capital management

Preparing the operating budget

Capital budgeting decisions

Making financial decisions

Key Financial Statements

Understanding the Accounting Cycle

The Five Key Accounts of Financial Statements

Income Statement: A Measuring Tool for Company Performance

Accrual Principle vs. Cash Principle

Statement of Financial Position: A Measuring the Current Situation

Balance Sheet

Statement of Equity

Statement of Cash Flows: Cash is everything!

Responsibilities of Internal and External Auditors

Financial Statement Analysis

Why Are Ratios Useful?

Trend Analysis and Horizontal Analysis

Vertical Analysis: Financial Statements with Common Fundamentals

Basic Component Analysis and Reading and Analyzing Numbers

Liquidity Ratios: Ability to Pay Short-Term Obligations

Solvency Ratio: Ability to Pay Long-Term Obligations

Activity Ratio: Ability to Manage Assets Efficiently

Profitability Ratio

Limitations of Financial Ratio Analysis

Working Capital

Definition and Management of Working Capital

Working Capital Management Strategies for Current Assets

Balancing Profitability and Liquidity

Working Capital Management Strategies for Current Liabilities

Trade-off between Profitability and Certainty

Summary: The Concept of Financial Management

Accounting vs. Financial Management: Rules and Responsibilities

Key Decisions in Financial Management:

Financing Decisions

Investment Decisions

Operating Decisions