Sound finance is essential to every business. We can all have effect on the success of the company’s financial plans. But all too often people feel excluded by the jargon and mystique surrounding finance. 

This course opens up the world of finance. After attendance you will feel better equipped to talk to finance specialists and influence financial success.

This course is approved by the independent Institute of Leadership & Management (ILM). The ILM is the UK’s leading awarding body for management and leadership training. Delegates will receive an ILM award certificate after completing this course.

We provide this course either as in-company course. Click here for in-company course pricing.

Course Aims

You will learn :

• The aims and benefits of financial monitoring and reporting.
• The meaning of important financial jargon.
• How to read and interpret company accounts.
• What to look for in profit and loss accounts and balance sheets
• The difference between cash and profit.
• How to measure a business using key performance ratios.
• What to include in a budget.
• How to prepare a forecast.
• What to include in a business proposal that involves expenditure.
• The difference between financial strategy and day to day control.

Course Structure

The course includes classroom teaching and lots of interaction.

There are also exercises throughout the course which will help you apply the techniques covered in the course to real life business situations.

To help ensure the course meets your needs we will ask in advance if there are particular key topics you will want to see covered

Course Schedule

Day 1 - Module 1 - Business Finance Introduction

We introduce the basic building blocks of company finance and use examples relevant to course delegates wherever possible.

1. Terminology and Principles

• Financial objectives
• Statutory and management accounts
• Origin of accounting standards
• Some financial jargon
• Practical accounting principles

2. Profit & Loss

• What constitutes turnover
• Cost of sales
• Fixed and variable costs
• Cash and accrual accounting
• VAT and where it fits in

3. Balance Sheet

• Assets and liabilities
• Fixed and current assets
• Balance Sheet Structure
• Impact on balance sheet from changes in the business
• Depreciation & Amortisation

Day 1 - Module 2 - Cash flow, public accounts and budgeting

In this module we:

• Help you understand why cash-flow is important to a business
• Look at the difference between accounting in a large public company compared to smaller businesses.
• Introduce budgeting which is important in making sure a business is profitable.

1. Cash Flow

• The importance of cash flow
• The Cash Flow Statement
• UK Reporting Requirements
• How cash flow links back to recorded profit
• Free cash flow
• Limitations of cash flow statements
• How companies can correct a real cash flow problem

2. Private versus public accounts

• Sole trader, partnership and Limited Company accounts
• Public Company, Large company and Stock Exchange requirements

3. Budgeting

• Aim of budgeting
• The budget cycle (Plan, implement, monitor re-plan etc.)
• Budget Planning
• Incremental & Zero Based Budgeting
• The human side to budgets, what can make the process work or fail.
• Budget monitoring & Variances

Day 2 - Module 3 - Business Proposals & Forecasting

We’ll show you how to review the financing of a business project so you can see which can be winners for the business.

We’ll also help you assess how to increase the profits from a business project - the results might surprise you !

Course Topics :

• Assessing a business proposition; what to look out for.
• Marketing issues
• Finance issues:
  • Return on investment
  • Break even analysis – The payback period
  • Discounted cash flow
  • Risk and uncertainty
• Sensitivity analysis; the role of different factors in achieving profits and gross margins:
  • Sales volume
  • Sales pricing
  • Material costs (e.g. lower grade paper)
  • Manpower overheads
  • What-if analysis
• Is the investment feasible?
• Spreadsheet software and how it helps.

Day 2 - Module 4 - What to look for in a business

We’ll show you how to critically examine the finances of a complete business.

You’ll be introduced to the methods used by banks and investment analysts to understand the financial strength of a business.

You’ll also apply these methods using real-life case studies to compare different businesses.

Course Topics :

• What are the key financial issues ?
  • Underlying Operation
  • Funding Structure
• Key ratios – Underlying Operation
• Key ratios – Funding Structure
• Terms used as part of ratio calculations
  • Capital employed, net worth, working capital, profit before and after tax.
• Key ratios in detail – Underlying Operation
  • Return on Equity, Return on Total Assets
  • Profit Margin, Sales to Fixed Assets, Sales to Stocks, Sales to Debtors
• Key ratios in detail – Funding Structure
  • Liquidity - Current ratio, Quick ratio, Working capital to sales
  • Financial Strength - Debt to Equity