INTRODUCTION
In the globally competitive world of 21st-century business, decision-makers face unprecedented levels of risk and uncertainty - to survive and flourish in this challenging environment organizations need the right tools with which to analyze problems and anticipate and manage the many opportunities and threats that may emerge.
Traditional forms of financial analysis and forecasting no longer meet these needs and the most progressive firms are using the power of financial models to help them analyze challenges and take a more powerful approach to manage risk in their planning and forecasting.
Financial management is the planning, organizing, directing, and controlling of an organization’s financial activities such as procurement and the utilization of funds. The purpose of this course is to provide participants with the fundamental financial knowledge and skills to enable them to participate in business activities such as financial planning, and financial control and to make savvy financial and investment decisions.
Target Audience
- Finance Professionals
- Budgeting and Planning Managers
- Commercial Managers
- Divisional Managers
- Purchasing and Supply Chain Managers
- Project Managers
- Chief Financial Officers and Financial Controllers
- Treasury Team Members
- Capital Investment and Project Staff
- Managers involved in Financial Decision-Making
LEARNING OBJECTIVES
At the end of the course participants will be able to:
- Appreciate the importance of the accounting and finance function
- Understand accounting for routine business transactions
- Be able to prepare simple financial statements
- Be able to analyze company performance using basic ratios
- Be aware of costing and budgeting techniques to maintain efficiency and profitability
- Distinguish between financial accounting and financial management;
- Detail the definitions and terminology used in financial management;
- Underline the various accounting principles and definitions in order to build a foundation in accounting terminology on which to better understand financial management;
- Prepare a set of financial statements;
- Perform financial analysis of a set of financial statements;
- Establish the purpose of working capital management;
- Discover the role of budgeting in short-term financial planning;
- Explain the meaning of the time value of money and calculate its impact on investment decisions;
- Explain the relationship between risk and return on investment.
TOPICS TO BE COVERED
Day 1
Introduction to financial analysis
- Identifying the relationship between cash flow and profit
- Development of an integrated cash flow model
- Recognizing it’s all about cash
- Understanding the relationships between the three main accounting statements
- Exercise 1 - Accounting terminology
Fundamentals of accounting statements-the profit and loss account
How the P&L has changed over the last 25 years
- Detailed review of the Profit and Loss account including an explanation of all significant accounting terminology
- Profit types - trading, asset, and business
- Inventory, depreciation, capitalized interest
- Minority interests and consolidation
- Exceptional and material items
Fundamentals of accounting statements-the balance sheet
Detailed review of the balance sheet including an explanation of all significant accounting terminology
- Understanding the fixed assets note
- Accounting goodwill – what is it?
- Liabilities, pension fund accounting
- Debt and other liabilities like debt
- Deferred tax, contingent liabilities
Financial analysis techniques-ratio analysis
Objectives of ratio analysis
- Developing ratio analysis skills
- Different types of ratios
- How much information is there in ratios?
- Ratio rules – avoiding errors of principle
Day 2
Cash flow analysis and accounting issues
Understanding cash flows
- Detailed review of the cash flow statement
- Analyzing and interpreting cash flows
- Summarizing cash flows for analysis
Cash flow analysis
- The four phases in the life of a business Cash flow analysis-taking it further
- Dealing with the consequences of growth and no-growth
Accounting abuses and update
- Abuses of Fair Accounting
- Basic abuses relevant to all businesses
- More complex abuses relevant to larger groups
Global accounting in the new century
- Overview of the International Accounting Standards Board
- The implications of the IAS Initiative
- Review of new standards produced in the last five years
Day 3
Financial mathematics and project analysis
The time value of money
- Present and future values
- Defining the discount factor
- Exercises: Discounting calculations
Net present value -developing the concept
- NPVs and varying future cash flows
- Perpetuities and annuities
- Exercises: Annuities and perpetuities
Project analysis
- Introduction to project analysis
- Developing a forecast of the project cash flows
- Identifying the key risk areas
Evaluating capital investment projects
- Discounted cash flow techniques
- Calculating the internal rate of return
The responsibilities of management
- The essential aspects of the management task
Costing and break-even analysis
- Fixed and variable costs
- Marginal, absorption, and standard costing
Day 4
Spreadsheet analysis skills
Introduction to spreadsheets
- Using spreadsheet programs for business analysis and forecasting
- The issue of spreadsheet risk
Day 5
- Financial Accounting
- Analysis of Financial Statements
- Short-term Financial Management Decisions
- Long-term Financial and Investment Decisions
About Madrid
Madrid is a city that combines its enduring history with its cosmopolitan atmosphere to create a destination that favored amongst tourists from around the world. This is a city that is very much bursting at the seams with life and its vibrant atmosphere, cultural attractions and connection with history ensure travelers have everything they could possibly want from a European city break. At the end of a flight to Madrid, there are sites to see, picturesque streets to roam and, of course, excellent shopping opportunities to explore. Visitors can immerse themselves in Madrid's fantastic local culture, its peerless art scene and world acclaimed fine dining. In fact, there is very little that Madrid doesn't have to offer.
Things to do and places to visit in Madrid
The only problem travelers will encounter during their visit to Madrid is knowing what to do first. Sampling the mouth-watering tapas, strolling through one of the many excellent museums or even simply soaking up the atmosphere are all excellent options. Spend a sunny day wandering through the splendid squares or marvel at the intricate architecture of the churches.With so many options, flights to Madrid are great for people of any age or inclination.
When visiting Madrid, be sure to:
- See the superb collection of art is the Museo del Prado.
- Stroll down the Gran Via.
- Enjoy the atmosphere of the Plaza Mayor.
- Wander through the stunning gardens of the Parque del Buen Retiro.
- See the beautiful mansion of the Museo Lazaro Galdiano.
- Find quirky fashions in the Fuencarral market.
- Try some of the many different tapas dishes.
- Visit the statues of Don Quixote and Sancho Panza in the Plaza de Espana.
- See the breathtaking Basilica de San Francisco El Grande.
- Wander the Casa de Campo park, which is five times the size of Central Park.
- Shop in the luxury boutiques of the Golden Mile.
- Look for bargains at the El Rasto flea market.
- See Picasso's Guernica in the Reina Sofia museum.
- Snack on churros with chocolate.