COURSE OVERVIEW
Financial accounting serves as the foundational method for recording and reporting financial information in a business. Understanding the principles and framework of finance, planning, and control is essential to see how accounting integrates with the broader business environment. The accounting function is critical for developing and communicating information that supports sound economic decision-making and delivers value to organizations and society.
LEARNING OBJECTIVES
Upon completing this Best Practices in Financial Analysis, Planning & Control training, participants will be able to:
- Explain fundamental financing concepts, terminology, principles, processes, and procedures used in preparing financial statements.
- Understand the role of accounting in business operations.
- Identify the key components of an annual report.
- Use financial information to analyze business performance and guide economic decisions.
- Prepare accurate balance sheets and income statements.
- Evaluate a company’s financial health through comprehensive analysis of financial statements.
- Compare and choose appropriate financing options for different business scenarios.
- Apply advanced planning and control techniques to budgeting processes.
- Align the budgeting process with long-term strategic business goals.
- Establish decision-support systems that provide timely and actionable financial information.
- Implement strategies to enhance profitability and performance through efficient planning and reporting.
TARGET AUDIENCE
This training course is designed for a wide range of professionals, including:
- Individuals with financial responsibilities.
- Managers seeking to enhance their knowledge of planning and control techniques.
- Financial officers, controllers, accountants, and business consultants.
- Corporate governance directors and compliance officers.
- Professionals responsible for budgeting and management reporting.
- Anyone directly involved in planning and budgeting activities.
TRAINING METHODOLOGY
This interactive program combines a variety of learning methods, including:
- Instructor-led presentations with Q&A sessions
- Practical demonstrations and exercises on analytical techniques
- Group discussions and case studies
- Application of market data for real-world context
While the course covers essential theoretical concepts, the primary focus is on practical application, equipping participants with a toolkit of actionable financial techniques. Pre- and post-course assessments will measure knowledge gained and skill development.
COURSE CONTENT
Module 1: Company Objectives & Fundamentals of Finance
Key Topics:
- Measuring company performance
- Introduction to finance terminology
- Purpose of financial analysis and reporting
- Role of finance in business operations
- Navigating an annual report
- Role of external auditors
- Users of financial information
- Profit and profitability
- Financial analysis in decision-making
Module 2: Financial Statements
Key Topics:
- Understanding financial statements: balance sheet, income statement, and cash flow statement
- Importance of financial ratios
- Horizontal (trend) and vertical (common-size) analysis
- Interpreting liquidity, solvency, activity, and profitability ratios
- Limitations of financial ratio analysis
Module 3: Investment Decision Analysis
Key Topics:
- Cost behavior: fixed, variable, and semi-fixed costs
- Net Present Value (NPV) and Internal Rate of Return (IRR)
- Economic Value Added (EVA)
- Cost reduction and profit improvement strategies
- Costing approaches: full absorption, marginal, and ABC
- Cost-volume-profit (CVP) analysis and break-even analysis
- Risk management in investment decisions
Module 4: Strategic Management Framework
Key Topics:
- Budgeting objectives and types of budgets
- Budget preparation and control processes
- Identifying limitations of budgetary control
- Approaches to budget development
- Using budgets to drive organizational performance
- Role of finance and budgeting teams in strategic planning
- Capital budgeting and cash flow management
- Activity-based budgeting and cash budget development
- Case study exercises
Module 5: Advanced Valuation Techniques
Key Topics:
- Business risk and cost of capital
- Classifying and evaluating investment projects
- Analyzing operating and investment cash flows
- Time value of money and required rate of return
- NPV, IRR, multiple IRRs, and MIRR
- Profitability index (PI)
- Payback period and discounted payback period
- Capital rationing
- Comparing and selecting the most appropriate evaluation techniques
