INTRODUCTION
Financial analysis skills are crucial for effective managers. Major business decisions require good comprehension and analysis of accounting concepts and financial statements. Managers are also required to prepare business plans and the required financial budget. This 2-day practical skills workshop aims to equip non-accounting/finance managers with the knowledge, skills and tools required to understand finance concepts and analyze financial statements as well as developing the ability to convert business plan to financial budgets. A practical “business-critical” approach using real case studies will be used throughout the workshops.
BENEFITS OF ATTENDING
By the end of the course participants will be able to:
- Able to read and clearly understand financial statements of group accounts.
- Understand fundamental accounting concepts.
- Identifying the major accounting issues.
- Learn to interpret financial ratios.
- Develop an analytical mind in analyzing financial reports.
- Understand a company’s financial position and how is its business performance compares with others in the same industry via ratio analysis and interpretation.
- Understand the structure and major elements in audited financial statements.
- Detecting signs of financial distress and decision making.
COURSE OUTLINE
From Business Plan to Financial Plan
All Financial objectives are derived from a business plan.
- Phase 1 : From Vision to Financial Success.
- Phase 2 : From Success to Growth
- Growth Strategies: Organic, Acquisition.
Corporate Structure of a Business Enterprise
- Purpose and benefits of setting up a Limited Liability Corporation (Sendirian Berhad).
- Roles & Responsibilities of Shareholders; Board of Directors, Managing Director
- Memorandum and Articles of Association.
- Internal and External auditors and their roles and responsibilities.
- Corporate Governance; Roles & Responsibilities of Directors & Auditors.
Fundamental Accounting Concepts
- What is financial accounting all about.
- Accounting Equation-the key element in the Balance Sheet.
- Preparation of financial accounts in accordance with accounting conventions.
- An overview of the complete financial accounting process.
How To Read Financial Statements Of Companies
Understanding the typical structure and major elements in audited financial statements :
Balance Sheet
- Current Assets,
- Non Current Assets (Fixed Assets)
- Current Liabilities,
- Non Current Liabilities
- Equity
Income Statements
- Trading & Profit & Loss Account
Cash Flow Statements
- Cash Flow from Operations, Investment, Finance.
Major Financial Ratios and Determining the Financial Situation
Computation of key accounting ratios
- Profitability
- Operational Efficiency
- Liquidity
- Capital
Analysis and interpretation of the accounting ratios.
Identification of the key areas of financial concerns and decision making.
From Business Plan to Financial Plan- Budgeting Techniques
- Preparing a Business Plan and Developing the required Financial Budget.
- Making Strategic decisions to improve the budget financial outcomes.
Capital Budgeting
- What is Capital Budgeting ?
- The three key techniques of Capital Budgeting:
- Payback Method
- Net Present Value
- Internal Rate of Return