By the end of this course, participants will be able to:

• Prepare income statement, balance sheet, and cash flow statement
  
• Explain the difference between profit and cash flow
• Interpret cost behaviour and its impact on product costing
• Use accounting techniques to improve profitability and efficiency
• Construct functional and departmental budgets

Day One: Introduction to Accounting

• The importance of accounting information
  
• The role of the Finance Function
• The accounting equation and financial accounting systems
• Recording facts and applying judgement
• Preparing the Income Statement and Balance Sheet
• Accounting principles and accounting standards

Day Two: Accounting Reports

• The format and contents of the Income Statement
  
• The format and contents of the Balance Sheet
• The effect of depreciation and impairment on profit
• Identifying and valuing inventory
• Preparing the Cash flow Statement
• The importance of cash flow in business

Day Three: Management Accounting for Control and Decision-Making

• Collecting and analyzing costs
  
• The structure of direct and indirect costs
• Dealing with overheads – absorption costing or ABC?
• Cost-Volume-Profit and break even analysis
• Decision making – make or buy
• Decision making – the effect of limiting factors

Day Four: Communicating the Plan through Budgeting

• Corporate planning and corporate objectives implemented through budgeting
  
• The budgeting process and timescale
• Sales budget forecasting techniques
• Cascading the budgets across the whole business
• Preparing functional budgets and the cash budget
• Budgeting principles, methodologies and applications

Day Five: Measuring Performance to Inform Decision Making

• Monthly management reporting
  
• Setting and using standards
• Identifying and calculating variances
• Operating and planning variances – who is responsible?
• Measuring responsibility centre performance, ROI, RI, and EVA
• Non-financial performance – the Balanced Scorecard

This course is suitable for a wide range of professionals who wish to achieve career progress by expanding their financial knowledge. However, it will be most suitable for operational and middle Managers who wish to better understand and make use of financial information in their management roles, for example:

• Members of the operational management team
• Managers who have responsibility for divisional performance
• Managers who have responsibility for support functions
• Consultants who provide advice on systems and operations
• Senior staff members of any department