Corporate Management, Gestion d'entreprise, entrepreneuriat, PME Orsys, with 30 years of experience, is providing high quality, independant State of the Art seminars and hands-on courses corresponding to the needs of IT professionals. Orsys proposes a set of courses on the most important topics in IT technologies and management. Financial analysis for non-financial staff (réf. BFI)... p.2 Business accounting, the essentials (réf. IIG)... p.4 Building, negotiating, and tracking your budget (réf. BUG)... p.6 Practical aspects of cash management (réf. SOR)... p.7 Advanced corporate management (réf. MOG)... p.9 Mastering payroll (réf. MMS)... p.11 Assessing the profitability of an investment (réf. RVI)... p.13 Creating a realistic, convincing business plan (réf. BUP)... p.15 ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 1
Hands-on course, 2 Ref : BFI No particular knowledge. Financial analysis for non-financial staff Reading a balance sheet, gauging a company by its profit and loss account and assessing their correlation. Assessing the performance (gross margin, operating profit, etc.), analyzing its solvency and its strategy. Producing an analysis of the assets and of the capacity for self-financing. 1) Researching information 2) Understanding the company s business activities through the profit and loss account 3) Introduction to financial analysis 4) Assessing profitability and financial strength 5) Analyzing financial health through the balance sheet 6) Understanding the financial strategy 7) Valuing the company 1) Researching information - Understanding the accounts of a company and knowing how to read a balance sheet: equity, solvency, etc. - Critique and limitations of the balance sheet. Presentation, schematic and analytic reading of a closing balance sheet. 2) Understanding the company s business activities through the profit and loss account - Understanding its level of output. - What was its consumption. - Making the connection between the balance sheet and the profit and loss account. - Critique and limitations of the profit and loss account. Reading a closing balance sheet. General presentation of the profit and loss account, interpretation of the various results. 3) Introduction to financial analysis - What is the purpose of a financial analysis? - The value of the financial analysis. 4) Assessing profitability and financial strength - The profit and loss account and the intermediate management balances. - Some company performance indicators. - Interpreting the various balances in the profit and loss account: gross margin, value added, operating profit/ loss. - Analyzing and interpreting ordinary, extraordinary and net profit/loss: how did the profit or loss arise? - Analysis of profitability. - The capacity for self-financing. - The principal key ratios which allow the strengths and weaknesses of the company to be identified quickly. Training in financial analysis: analysis of the profit and loss account and profitability. 5) Analyzing financial health through the balance sheet - Financing the company s needs: equity, borrowed capital, capital financing. - Operating cycles: to what extent can the company pay its debts in the short term? - The principal key ratios: solvency, optimization of the WCR and measurement of liquidity. Analysis of the balance sheet. Role-playing. Exercise in restatements and reclassifications. 6) Understanding the financial strategy - Dynamic analysis of the cash reserves. - Cash flow statement. Financing table. - The financial levers. - The advantages of each source of financing. 7) Valuing the company - The valuation of the company. - Examples of approaches to the valuation: asset-backed approach, cash-flow method. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 2
Financial analysis of a company. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 3
Hands-on course, 3 Ref : IIG Participants Anyone who wants to learn the basics of corporate management and accounting.. No particular knowledge. Business accounting, the essentials Initiation into corporate management, from logs to major accounting documents: Balance sheet, profit and loss account, cash statement. Notions of cost accounting: Costing, profitability analysis and solvency analysis Awareness of statistical risk analysis (scoring). Understand the environment and know the main legal rules relating to corporate management. Awareness of the various components and operation of an accounting system Make accounting entries and balance them Perform costing using multiple methods: Full, partial, or specific costs. Determine profitability thresholds and calculate a solvency ratio 1) General framework of corporate management 2) Learning about corporate management documents 3) Accounts and managerial elements: How they operate 4) From general accounting to cost accounting 5) Costing 6) Profitability and solvency analysis 7) Method for scoring companies 1) General framework of corporate management - The company and its environment. - Different legal structures for a company. 2) Learning about corporate management documents - Balance sheet. - Profit and loss account. - Cash flow statement. Case study Create a balance sheet and a profit and loss account. 3) Accounts and managerial elements: How they operate - Principle and role of general accounting. - Overview of the accounting system: Logs, T-accounts, general ledger, balance. - Spotlight on balance sheet items. - Spotlight on profit and loss account items. Case study Accounting document analysis (General ledger, balance sheet, etc.). Design an accounting entry. Create a balance sheet. 4) From general accounting to cost accounting - Switching from the notion of expenses (by type) to the notion of costs (by purpose). - Method for calculating costs. - Fundamental analyses: Relevant costs and decision tools. 5) Costing - Different methods: Total, partial, and specific costs. - Calculating margins. - Analyzing and evaluating inventories: The "first in, first out" method, the weighted average unit cost method. Case study Calculate costs. 6) Profitability and solvency analysis - Determining the profitability threshold or "break-even" point. - Defining and calculating profitability and solvency ratios. - Building and explaining scorecards. Case study Calculate profitability ratios. Analyze various scorecards. 7) Method for scoring companies - Bank of France method. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 4
Case study Analyze a document showing a company's risk. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 5
Hands-on course, 3 Ref : BUG Participants Management controllers, financial and administrative officers, accounting managers, all employees involved in creating and tracking budgets. Be a manager or future operational manager Building, negotiating, and tracking your budget This course will enable you to identify and manage the steps and methods of budgeting. You'll learn how to build, approve, and track your budget and advise operational staff about what to do in the event of deviations. Integrate your own unit's budgeting process into your company's. Create operating, capital, and summary budgets. Determine a cash flow balance and create a provisional profit and loss account. Make any budgetary adjustments, trade-offs, and corrections Control your budget, analyze and correct any deviations 1) Placing the budget tool in the context of the company's information system. 2) Understanding the structure of the budget 3) Approving your budget 4) Tracking and controlling your budget 5) Setting up a client/supplier relationship with operational staff 1) Placing the budget tool in the context of the company's information system. - Management control process - Different planning horizons. - How budget controls are organized. - The annual budget: A performance management tool. Individual brainstorming session: Describe how your company's budget process is organized. 2) Understanding the structure of the budget - Budgeting prerequisites. - The steps and players in the budgeting procedure. - The budget creation diagram. - Operating budgets: Sales, production, procurement, payroll, support functions. - The provisional profit and loss account. - Capital budgets: List and rank capital investments, commitments. - Summary budgets: Cash budget, provisional balance sheet and cash flow, financing plan. Create a provisional balance sheet and determine a cash flow balance. 3) Approving your budget - Knowing how to negotiate and sell your budget: The five key success factors. - How can you argue for your action plans and earn support for them? - Budgetary consolidation - Budget adjustments and arbitration. - Month-to-month budgeting. Using a pre-written budget, present and argue for your action plans. 4) Tracking and controlling your budget - The fundamentals of budget control. - Prerequisites for deviation analysis. - The notion of flexible budgets. - Knowing the main deviations: Quantity, price. - Standard costs. Different types of costing to opt for. - Deviation analysis: Deviations in turnover, in direct or indirect costs, in return. - Putting corrective actions in place. Calculate and interpret the budget deviations. 5) Setting up a client/supplier relationship with operational staff - Confirming the observed deviations. - Creating a budget re-forecast or re-estimate. Based on the observed deviations, propose corrective action plans. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 6
Hands-on course, 2 Ref : SOR Participants This course is for people who are asked to create and monitor budgets as well as manage the cash reserves. Knowledge of basic accounting mechanisms. Practical aspects of cash management Learn how to draw up annual cash flow forecasts and so that they can be used as a powerful simulation tool. Be able to draw up reliable cash forecasts. Make cash more sustainable through actions to manage the WCR and anticipate customer defaults. Identify the sources of financial and accounting information required for the cash flow forecast Assess the cash position of your company through analysis of the various ratios Draw up a cash flow forecast budget Protect cash flow by checking the creditworthiness of your customers Optimize your WCR (Working Capital Requirement) 1) Accounting refreshers for cash flow management 2) Identifying the sources of information for the cash flow forecast 3) Assessing the cash position of the company 4) Drawing up a budget and a cash flow plan 5) Understanding and implementing a system of customer solvency monitoring 6) Implementing elements to improve the Working Capital Requirement. 1) Accounting refreshers for cash flow management - Presentation and reading of the balance sheet: a snapshot of the assets of the company at a given point in time. - The various items on the assets side of the balance sheet: fixed assets, receivables, amortizations, inventories, etc. - The various items on the liabilities side of the balance sheet: equity capital, provisions, borrowings, debts, etc. - The profit and loss account: the measurement of the economic activity of a company over a financial year. - The components of the profit and loss account: revenues and operating, financial and exceptional costs. - The notes to the financial statements: the explanations for variations from one financial year to the next. Hands-on work 2) Identifying the sources of information for the cash flow forecast - Understanding the operating cycle. - Understanding the laws of cash receipts and payments. - Developing investment and financing budgets in the medium and long term. - Understanding the concept of normative Working Capital Requirement (WCR). Hands-on work Calculation of a normative Operational Working Capital Requirement (OWCR). 3) Assessing the cash position of the company - Carrying out a static analysis based on the balance sheet: the rule of financial balances. - Analyzing the operating balances: determining the Working Capital Requirement (WCR). - Using cash flow statements. - Analyzing the situation from the profit and loss account: understanding and respecting the rule of optimization of margins. - Determining the company s capacity for self-financing. - Understanding the various traditional reasons why the annual cash flow forecast can be unreliable. Case study Analyze the top and bottom of the balance sheet. Present an operational balance. Calculate a Working Capital Requirement, assess the cash flow position of a company and analyze its ratios. 4) Drawing up a budget and a cash flow plan - Constructing the budget: the terminology and the concept of budget management. - Understanding the importance of cash flow modeling. - Drawing up a cash flow plan. - Making the necessary adjustments on the basic accounting data. - Developing and articulating the various budgets: sales, production, procurement, general services, etc. - Implementing a budget check: (variations in costs and sales). - Putting corrective actions in place. Hands-on work Draw up a cash flow forecast and analyze it. Calculate differences on the Turnover and expenses. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 7
5) Understanding and implementing a system of customer solvency monitoring - Understanding the importance of setting up a customer monitoring system. - Analyzing the solvency and profitability of customers: structural, liquidity, management and business activity ratios, etc. - Securing the processing of your receivables into cash. - Spotting the warning signs before a customer default. - Understanding the legislation designed to prevent companies getting into difficulties (the seven stages of the law of 26/07/2005). - Focus: reminder of the Law of Modernization of the Economy (LME) of 04/08/2008 on the new decrease in customer credit. Hands-on work Calculate and analyze structural and liquidity ratios and other indicators of customer solvency. 6) Implementing elements to improve the Working Capital Requirement. - Defining the financial balance of the company (WCR / Overall Net Working Capital (ONWC) / net cash). - Understanding the actions to be implemented to improve the cash flow. - Understanding the actions to be implemented to improve the company s margins. - Optimizing your Working Capital Requirement: Cash culture - Optimizing average settlement timescales. Hands-on work Optimizing your company s Working Capital Requirement, reducing customer settlement timescales. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 8
Hands-on course, 3 Ref : MOG Participants All managers who know how their business unit is managed. No particular knowledge. Advanced corporate management Using management tools to measure results, analyze margins, optimize resources in order to set goals, take actions to grow and monitor your business. Manage costs and determine the right sales prices for your products or services Calculate margins and determine break-even points Monitor your business with scorecards and scoring methods Create, link, and control various budgets 1) Analyzing the company and its environment 2) Analyzing its costs 3) Optimizing your margins and profitability 4) Monitoring your business: The scorecard 5) Identifying growth opportunities 6) Budget tools 7) Budget control 1) Analyzing the company and its environment - Analyzing the economic context. - Analyzing global demand. - Analysis of trends. - Distinction between general and cost accounting. 2) Analyzing its costs - Introduction to cost accounting. - Analyzing items to incorporate into costs. - Hierarchy of costs and determining profit/loss. - Handling indirect expenses: The cost center model. - Variable expenses/fixed expenses. - Cascading costs method and ABC method. Case study Determine the sales price of products by properly managing their costs. 3) Optimizing your margins and profitability - Calculating costs, margins, and break-even point. - Breaking even: How to calculate and optimize it. Define the break-even points of products or services. Categorize the expenses as fixed or variable. 4) Monitoring your business: The scorecard - The scorecard as a key decision factor. - Action variables. Alert thresholds. - Result indicators and performance indicators. - Questioning whether the indicators are meaningful. - Making an impactful comment using the scoring method. Monitor the company using multiple scoring methods. Assess the company's profitability and solvency. 5) Identifying growth opportunities - Studying internal and external variables. - Spotting market trends. - Analyzing activity. - Defining a capital project. - Evaluating its actual cost. - Studying economic profitability. - Determining selection criteria. Comparing the net present values and internal rates of return of several capital projects. 6) Budget tools - Creating and linking budgets: Sales, production, procurement, corporate services. - Case studyanticipate changes in cash flow using budget forecasts. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 9
7) Budget control - Deviation analysis: Identification, measures, corrective actions. Case study Creating new 3-, 6-, and 9-month budget pictures. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 10
Hands-on course, 2 Ref : MMS Participants Any employee in charge of payment or compensation, payment managers, HR representatives, management controllers, CFOs, and chartered accountants. Basic knowledge of payment and compensation mechanisms. Mastering payroll Learn to identify components of payroll, to oversee constraints, breakdowns, and changes in costs. Find out how to manage skill guidance, staff movements, and changes in working hours as well as processing social security contributions and adjustments to them. Define payroll and understand its various components. Track and analyze changes in your company's payroll Estimate the impact of staff transfers on changes in payroll. Calculate the weight that each contribution has in payroll Put in place a tracking scorecard 1) Definition and contents of the payroll 2) Factors that lead to changes in payroll 3) The impact of staff transfers 4) The impact of employer contributions 5) Tracking and monitoring payroll 1) Definition and contents of the payroll - The cost of the salary. - The basic salary. Premiums and compensation. - Compensation factors. - Changes in work time and employee protection. - Employee savings. - Payroll concepts. - Telling apart personnel costs and payroll. Hands-on work Calculating baseline payroll while integrating issues specific to each organization. 2) Factors that lead to changes in payroll - Strategic and legal factors. - The impact of the company's strategic decisions. - The impact of decisions by government authorities. - Turnover, aging, and skills - Raises. Different types of raises. - Mass effect: Cost over the course of a year. - Deferment effect: Cost over the following year. Hands-on workanalysis and tracking of individual raises. 3) The impact of staff transfers - Analyzing staff transfers. - Measuring workforce size. Analyzing fixed-term contracts. - Arranging work time and staff. - Staff transfers and changes in business. - Replacing staff: The Noria effect. - Category changes: Structural effects. - Staff changes: Staff effects. Activity changes: Time changes. - Changes in average salaries: Statistical ratio. Hands-on work Case study: Calculating changes in payroll. 4) The impact of employer contributions - Assessing your contributions and changes to them. - Calculating your employer and employee contributions. - Increases in contribution levels and the cap. - Life insurance and pensions. - Contribution reductions and exemptions. - Fillon Law (France). Tépa Law (France). - Impact of partial employment compensation. Hands-on work Building a budget of personnel expenses. 5) Tracking and monitoring payroll - What do we mean by managing payroll? ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 11
- Parts of a scorecard. - Payroll software. - Payroll tracking. - Event and group tracking. - Deviations and corrective actions. Hands-on work Payroll tracking scorecard. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 12
Hands-on course, 2 Ref : RVI Participants Anyone who wants to confirm the profitability of his or her investments, financial managers, management controllers, treasurers, operational managers. No particular knowledge. Assessing the profitability of an investment This course will allow you to gain proficiency in the notions of Capital Expenditure (CAPEX) investment, amortizations, and the lifespan of a capital asset. You'll also learn how to measure an investment's profitability. Know the basics of financial analysis Calculate the lifespans of capital assets Calculate amortization using different methods Analyze the profitability of an investment Choose the right financing method for a given investment. 1) General accounting notes 2) The company as an investment 3) Capital investment as a one-time project 4) Capital assets 5) Amortization: Different methods 6) Investment calculations 7) Financing investments: Benefits and drawbacks 1) General accounting notes - Vocabulary, double-entry method, entries, general overview. - The accounting plan - Amortizations and provisions. - The profit and loss account. - Handling inventories. - The balance sheet. - Tax aspects. Hands-on work Examples and exercises in making several accounting entries. 2) The company as an investment - The profit and loss account. - The bottom line. Working capital requirements. Cash. The notion of cash flow. - Equity. Working capital, net assets, net position. Ongoing capital. - Basics of financial analysis: Operating ratios and financial structures. Case study on an actual case and a tax return: Financial analysis. 3) Capital investment as a one-time project - Differences between "capital investment" and "operating expenses", CAPEX and OPEX. - Characteristics of a project - Project management criteria. - Budgets: Creating them, updating them, calculating deviations in time and cost. Deviation-calculating exercises. 4) Capital assets - Main. - Secondary. - Component-based approach. 5) Amortization: Different methods - Straight-line. - Accelerated. - Other methods. 6) Investment calculations - Flows and cash flows. - Discounting. Concept. Financial calculations: The basics. - Investment profitability: Concept and calculation. - Investment-choosing criteria: NPV, IRR, payback period, etc. Exercises in choosing different investments. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 13
7) Financing investments: Benefits and drawbacks - From equity. - Buying on credit. - Leasing. Exercises in choosing different financing methods for a single investment. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 14
Hands-on course, 2 Ref : BUP Participants Business creators or acquirers, company leaders, product managers, business unit directors, profit center managers, financial executives, operational managers, etc. No particular knowledge. Creating a realistic, convincing business plan Define, structure, and monitor a business plan. Create the marketing and technical aspects and draft a financing plan (managerial and accounting tools). Evaluate its impact and feasibility, provide contingency plans and abandonment costs. Design marketing and sales pitches for communication. Formalize your ideas and project into a business model Structure the drafting of your business plan Create a business plan with multiple parts: Financial, technical, and marketing Know how to present your business plan and communicate about its distinctive features and its value Take a critical view of your own business plan and know how to be objective about its feasibility 1) Goals and purpose of the business plan 2) Structure of the business plan 3) Building the business plan 4) Critical analysis of the business plan 5) "Selling" the business plan 1) Goals and purpose of the business plan - Formalizing your ideas and strategic vision. - Positioning the project. - Defining the business model. - Financial calculations. - Getting financing for capital and operations. - Finding business partners, manufacturers and salespeople to work with, etc. - Having a tool for monitoring and overseeing the project. Hands-on work Description of different types of business models. 2) Structure of the business plan - Standard plan. - Adapting it to suit any plan's specifics. - Structure of the written documents. - Contributors. Case study A real estate project. 3) Building the business plan - The project's drivers. - The marketing aspect: Product line, positioning, pricing, sales estimates, etc. - The technical aspect: Capital investment, procurement, organization, human resources, etc. - The financial aspect: The balance sheet and provisional profit and loss account, break-even point, ROI, etc. Hands-on work Using different methods for estimating sales. 4) Critical analysis of the business plan - Identifying key factors for success and risk factors. - Making contingency plans. - Implementing simulations and assessing their impact. - Feasibility and sustainability assessment. - Calculating the project's abandonment cost. Case study Critical analysis of a business plan: Points that show clarity, missing information, etc. 5) "Selling" the business plan - Highlighting the project's distinctive features and intrinsic value. - Proof that the financial estimates are sound and reliable. - Formal drafting: Form and substance, creating an impactful, meaningful document. - Oral presentation: Types of presentation, tools to use to gain confidence and win over people. Hands-on work Simulated oral presentations of your business plan to a bank. ORSYS, La Grande Arche, Paroi Nord, 92044 Paris La Défense cedex. Tél : +33 (0)1 49 07 73 73. Fax : +33(0)1 49 07 73 78 page 15