Finance for Non-Finance Directors: Financial Business Management Tools and Financial Business Concepts for Executive and Non-Executive Directors
Being an effective board member in the private, public or voluntary sector requires a firm grasp and an in depth understanding of a range of financial concepts and skills.
This course will provide the essential knowledge of those key financial management issues and concepts that are needed by successful Executive and Non-Executive Directors in order to discharge their duties and responsibilities as a company director. The completion of this course will provide a good grasp of the key elements of Management Accounts and Statutory Financial Accounts. It will also provide a sound theoretical financial knowledge base upon which to build and acquire new and more advanced financial management skills.
Attendees will gain a thorough understanding of the Cashflow, Profit & Loss and Balance Sheet elements of Management Accounts. You will become more involved with all types of financial discussions within your organisation. You will be more confident and comfortable when communicating with financial managers, directors, investors, suppliers and key clients.
Who should attend?
Executive and Non-Executive Directors, senior executives or aspiring directors looking to understand more about company finance.
The Three Key Financial Statements
- Cash Flow Statements: Importance of cash flow and Impact of credit and credit control, Problems affecting cash flow, Dealing with Debtors and Creditors
- Profit & Loss Account, Types of profit, and Layout & use of the profit & loss account
- Balance Sheets: Assets; Liabilities; Net current assets, capital employed and how to interpret the information;
Revenue and Capital Expenditure
- What are Capital and Revenue Expenditure
- Phasing of capital spend and its Implications for budget holders
Depreciation; Assets and liabilities
- What is Depreciation?
- The Different types and uses
Forecasts and Budgets
- The purpose of forecasts for the business
- Budget objectives
- Budgetary Control as a management tool
- Variance analysis
Using Ratios to Support Investment Decisions
- Return on Capital Employed (ROCE); Payback; Internal Rate of Return (IRR); Net Present Value of assets (NPV)
- Investment decisions and Return on Investment (ROI); Cost of capital
- Gearing, is the level of borrowing too risky? Liquidity, could the company hit cash flow problems? Profitability, how well is the company doing?
This half-day course enables participants to understand better, the key attributes and approaches that underpin a strategic and tactical financial approach to management and help to develop the key skills and styles that will allow participants to be more effective when adopting and applying a decision making approach to management.
By the end of this training course participants will be better able to:
- Read, analyse and interpret any set of Financial Statements, including the Balance Sheet, the Profit & Loss Account and the Cash Flow statements
- Understand and quantify the impact of the fundamental accounting concepts and the chosen policies upon any set of accounts
- Recognise and understand the underlying impact of the generally accepted accounting principles and policies on any Balance Sheet and Profit & Loss Account
- Understand the key differences between statutory published accounts and the internal monthly management accounts
- Identify and discuss the key financial issues facing an organisation
- Understand the wider commercial impact of any business decision and its interaction with non-financial aspects of the organisation, enabling you to make a better contribution to key discussions and decision making amongst managers and within the organisation
- Understand the basics of budgets and the implementation of budgeting processes
- Value any business using commonly used and widely accepted valuation techniques such as Net Asset Value, Enterprise Value and EBITDA
- Communicate more effectively and easily with Finance Directors, and other Finance professionals; through an in depth understanding of financial terminology, management and evaluation techniques.
David Doughty CDir FIoD
The course is delivered by David Doughty, a Chartered Director and highly experienced Non-Executive, Chief Executive, Chair, Entrepreneur and Business Mentor. David has extensive executive and non-executive experience in small and medium enterprises in private and public sectors. He is also a board level consultant to multi-national organisations and a Chartered Director Ambassador for the Institute of Directors. See his LinkedIn profile here: