LEARNING OUTCOMES:

• The art of finance and financial management
• Key financial terms
• Their role in company finances
• Where to find the rules and regulations for their area and industry
• Various types of financial reports, including income statements, balance sheets, cash flow statements, and statements of retained earnings
• How a chart of accounts is created
• Cash and accrual accounting
• Single and double entry bookkeeping
• Debits and credits
• Identifying and analyzing important financial data
• Making financial decisions
• Reading annual reports
• Determining whether a company is financially high or low risk
• Different types of organizational financial plans
• What budgets are and how to prepare them
• What computer skills they need to make you a financial whiz
• Dealing with financial situations that impact the people that work for them

COURSE OVERVIEW & CONTENT:

"In today's business world, managers who don't have a basic understanding of accounting are like pilots who don't know how to read instruments." - Peter Drucker

Many of us flinch when we hear terms like depreciation, cash flow, balance sheet, and (worst of all!) budgets. However, these are all important concepts to understand if you’re going to succeed in today’s business world, particularly as a Manager. Even better, financial terms are not as scary as they seem!

Getting the Facts Straight

• Starting with the Basics
• General Accepted Accounting Principles (GAAP)
• Getting to Know the Players
• Identifying the Key Players in Your Organization
• Governing Organizations

The Accounting Cycle

• Underlying Principles
  • Key Underlying Concepts
  • Cash Vs. Accrual Methods Of Accounting
• The Four Phases of the Accounting Cycle
• Case Study: Happy Haircuts

The Key Reports

• The Income Statement
• Sample Income Statement
• The Balance Sheet
• Sample Balance Sheet
• The Cash Flow Statement
• Statement of Retained Earnings
• Review Activity

Keeping Score

• Understanding the Chart of Accounts
• Single vs. Double Entry Accounting
• Self-Test

A Review of Financial Terms

• Additional Financial Terms
• A Review Exercise

Understanding Debits and Credits

• Demystify Two Terrifying Accounting Terms: Debits and Credits
  • Understanding Debits and Credits
• Working with Debits and Credits

Your Financial Analysis Toolbox

• Identifying the Relevant Data
• Analyzing the Data
• Tips on Weeding Out Useless Information
• How to Calculate Common Ratios
• Reading Annual Reports
• Case Study
• Using Charts and Graphs
• Useful Decision Making Tools
  • Using Ratios for Decision Making

Identifying High and Low Risk Companies

• General Guidelines
• Case Study

The Basics of Budgeting

• Defining a Budget
  • What a Budget is?
  • How Budget Should Fit into the Big Picture
• The Budgeting Process
• Case Study

Working Smarter

• Computer Survival Skills
• Things to Consider When Choosing Accounting Software

People and Numbers

• Dealing With Finances isn’t all Numbers
  • If an Employee’s Expense Report Doesn’t Look Correct?
  • Make Cuts to Someone’s Pay?
• Participants Will Examine Each Situation In Small Groups, and then Provide Some Tips On What To Do.

COURSE DURATION: TWO DAYS