Accounting and Finance for Non Financial Managers

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1 Accounting and Finance for Non Financial Managers Accounting & Finance for Non-financial Managers is a 3 day course for managers in today's business world. The aim of this course is to provide a firm foundation of accounting for the non-financial manager and to equip him/her with knowledge of the fundamental financial management theory and practice and the skills to apply this knowledge which will enable him/her to analyse a practical situation and apply the appropriate theory in order to find solutions to particular work-related challenges. It is essential for individuals to have a working knowledge of finance. If you don't have training or a background in finances, you may be at a disadvantage as you sit around the management table. Objectives Have a a grip on the major terms in financial literacy Better understanding of the non-financial manager s contribution to strategic decision making and a clear idea of the knowledge and skills needed in respect of financial statement analysis, cash flow analysis, the time value of money, capital budgeting and financial planning techniques, among others. Be able to assess the financial performance and health of your firm. Enhance your decision-making skills by integrating financial management concepts into your thinking.

2 Duration 3 days Audience Control the flow of money through your department. Understand the budgeting process and forecasting techniques. Manage your own budget, inventory and petty cash. The course is directed primarily at the non-financial manager who has no prior accounting and finance knowledge or who has the knowledge but needs refreshing on that knowledge. It will also serve as a basic guide, reference or springboard for further study in accounting and finance. Pre-Requisites None Outline After studying Accounting and Finance for the Non-financial Manager, you will be able to: Unit 1: Introduction to Basic Accounting Understand what Accounting is and what it is all about Know and understand the primary objectives of accounting Understand who the users of Accounting information are

3 Distinguish between Bookkeeping, Accounting and Finance Distinguish between Management Accounting and Financial Accounting Understand the financial goal of an enterprise Unit 2: Basic Accounting Concepts and Conventions Understand basic accounting concepts and conventions Understand double entry system Understand the main groups of accounts Understand the financial position and financial performance of an entity Unit 3: The Basic Accounting Equation and its Application Have a clear understanding of the basic accounting equation and its application, Understand the DEAD and CLIC rule Unit 4: The Accounting Cycle Understand what the accounting cycle is and all the steps related to it

4 Know and understand what source documents are and what role they play in the accounting process Know the elements that need to appear on a tax invoice as required by the VAT act Unit 5: Recording of Transactions Know the recording of transactions in the journal and posting them to the ledger Unit 6: Ledger Accounts and Postings Have a deeper understanding of ledger accounts and postings Understand the different types of ledger accounts Comprehensively apply the accounting equation in ledger accounts and be able to balance off ledger accounts Unit 7: Value Added Tax (VAT) Know and understand what VAT is Know the characteristics of VAT Know and understand the two types of VAT Know and understand the computation of VAT

5 Unit 8: Trial Balance Know and understand the limitations of the trial balance including the different types of errors that cannot be detected by the trial balance and also the location of the errors Know and understand the purpose/advantages of the trial balance Be able to construct a trial balance Unit 9: Financial Statements The different kinds of financial statements used by organizations and their importance How to prepare the different financial statements The components that make up the financial statements Unit 10: Analysis of Financial Statements Analyse financial statements and add immense value to SARS by making informed decisions in so far as the financial status of an organization or individual is concerned Comprehensively understand the various ratios used in accounting and in which categories they are or should be used Unit 11: Budgeting

6 Have a general understanding of budgets Be able to prepare budgets Understand budget variance and budget variance analysis Know the types of budgets, behavioural aspects of budgeting, the objectives/purposes of budgets, categories of budgeting and the cash budget. Unit 12: Profit Planning and Control Know and understand cost concepts, cost behavior, profit planning, steps in control, breakeven analysis Understand margin of safety and contribution margin Unit 13: Time Value of Money Distinguish between simple and compound interest Know the computation of future amounts and their present values Understand the present value of an annuity Unit 14: Capital Budgeting Have a deeper understanding of capital budgeting and capital budgeting techniques including the Payback period, Net present value, Accounting rate of return and the Internal rate of return Understand financing and sources of capital

7 Unit 15: Cost of Capital Be able to determine the cost of capital using the weighted Average Cost of Capital Know and understand market values, proportions and relevant returns. Unit 16: Management of Working Capital Understand working capital and how it is managed Know and understand the effective handling and managing of accounts receivable and accounts payable Be able to calculate the operating cycle and the cash cycle