The course will introduce various tools for conducting financial analyses that will support management decision-making. There will be an emphasis on the relevance of each tool in the context of decision-making and assumed objectives.  The course will also introduce delegates to the systems and structures of financial and management accounting and their value in ensuring the success of the business.

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

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

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!

RECTUS attendance certificate will be issued to all attendees completing minimum of 80% of the total course duration