TORC

Finance For Non-Financial Managers

Quick look

Torc offers a 2-day training course on finance for non-financial managers, equipping line & project managers with the financial regimens of business.

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Overview

Ultimately all work-related performance in an enterprise is expressed, justified and measured in financial terms. 

Everything gets rolled up and accorded meaning using a single universal  language, comprising numbers, ratios and € signs. 

This reality necessitates line and project managers to be fully au fait with the framework of regimens and metrics utilised by the finance function – ensuring their inputs and contributions are not lost in translation. 

This 2-day training course offers an accessible overview for non-financial managers of the framework of concepts and practices involved  – in the realm of profit and loss, return on investment, capital and operating allocations, debits and credits, assets and liabilities, etc. 

Participants will emerge practiced in the basics of finance and accounting and given the skills and confidence to ensure their decisions and actions do indeed align with the bottom line needs of the enterprise. 

Objectives

  • Gain a thorough understanding of financial vocabulary, concepts and practices
  • Understand how financial transactions get entered into financial records.
  • Appreciate the purpose and use of a budgeting process and how to develop a budget
  • Know how cost accounting improves profits – analysing variances with traditional & activity based systems
  • Learn how to read financial reports: including cash flows, balance sheet and income statement
  • Learn how to anchor decisions to financial frameworks to think commercially & deliver a better bottomline
  • Equip participants with financial models to explore scenarios and quantify uncertainty & risk

Programme Content

Department Budgets

  • Providing financial control – Monitoring and Managing the business unit budgets 
  • Why have financial plans……taking aim … fail to prepare, prepare to fail 
  • What is the difference between a forecast and a budget…..forecasts do not ensure goals are met 
  • Common misconceptions of budgeting…….is a weapon, is wrong, is number crunching 
  • Planning horizons….short term (operational), medium term (tactical), long term (strategic) 
  • How do you create a budget….start with the limiting factor, make it commercial, not last year + 
  • How do you agree on a budget…top down, bottom up, top down + bottom up 
  • What can you learn from a budget report……focus on the variance (€ not %) 
  • Why does actual profit differ from budgeted profit….perform variance analysis 
  • How is management action to be prioritised…..focus on the €, they pay the bills 

Understanding Financial Statements

  • What can you learn from financial statements
  • What is first thing you should look for – return on equity provided
  • What can financial statements tell you about how a business has being managed
  • How do primary financial statements inter-relate – the olympic rings
  • The importance of the accounting policies and notes to the financial statements – the nuggets
  • What are the danger signals to watch out for and where to find them – the alarm bells
  • Bring a large dose of common sense – the eye brow test
  • What financial statements cannot tell you and how do you fill the gaps – the limitations 

Financial Analysis & Decision-Making

  • Focus on what is relevant……….if it does not change it does not matter
  • Finance and purchasing……..Buy or lease decisions
  • Pricing decisions….marginal cost, full cost, target price
  • Impact of uncertainty….sensitivity analysis
  • What drives costs…know how they behave (fixed, variable)
  • How do costs affect the relationship between “sales” and profits….breakeven and beyond
  • What about cash flow –  €’s pay bills
  • What is cash management….keep net current assets low
  • What is the link between cash management and profit management
  • How do you measure cash performance; how do you manage cash flow 

Reviewing & Improving Business Practices

  • Business Unit management and Financial Management – Intrinsically linked
  • The importance of setting financial objectives…….know where you are going
  • Monitor profit, cash flow, long term projects………control where you are going
  • Measuring Business Unit Performance –  Financial and non financial
  • Understand the strategy, the goals and the performance measures
  •  Alternative centres for departmental and divisional performance (cost, revenue, profit, investment)
  • How to evaluate business unit performance (ROCE, Residual Income, EVA)
  • The balance scorecard and other Key Performance Indicators (KPIs)
  • Advanced financial analysis and benchmarking as a means of improving business processes
  • Practical issues that arise when using performance measurest

This course is suited for

Senior Managers, Middle Managers & Team Leaders

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