What you'll learn
DAY ONE: ESSENTIAL FINANCE
This workshop focuses on the 'bigger picture', looking at how the annual statements are put together and how they are linked. It also has a practical focus - from looking at the importance of maximising working capital and increasing your organisation's efficiency to understanding the profit drivers of your particular business. We will also look at key financial metrics, and see how they can help in monitoring your organisation's performance.
What you'll learn:
- The layout and terminology of the three main financial statements: the balance sheet, the profit and loss account and the cash flow statement
- How the three statements link together
- How to increase your organisation's bottom line by understanding profit drivers, both financial and non-financial
- How to manage working capital as effectively as possible, making cash work as well for the business as It can
- How to use KPI's to assess your entity's financial performance
DAY TWO: ESSENTIAL COSTS AND BUDGETING
This day focuses on internal financial management - the nuts and bolts of any business. Costs, break-even analysis, investment appraisal - at the end of the day you will understand how to ensure your actions and decisions have a positive financial impact.
What you'll learn:
- How different costs behave and the impact of this on profitability
- How to calculate breakeven point, and how to use CVP (Cost Volume Profit) analysis to work out optimum sales levels.
- What costs are relevant for decision making purposes, and which should be ignored
- How to appraise different investment projects – from payback period to discounted cash flows
- How to carry out a qualitative cost/benefit analysis as well as a quantitative one – e.g. when customer service or staff morale is the main objective
- The way budgets are constructed and interpreting variances