Introduction:

Given that businesses involve operations, processes, and the financial results derived from them, financial skills are considered among the most crucial for top managers to enable them to professionally read financial statements and reports issued by the financial management. This proficiency enhances decision-making quality by understanding how the organization reaches its current financial figures and the future implications of these numbers and financial results. The Finance program for non-financial managers provides essential skills to understand the components of financial statements, key financial indicators, methods of analysis, and their implications on decisions.

Course Objectives:

Provide participants with a clear understanding of fundamental financial concepts and principles.

Enable participants to interpret and analyze financial data, including general budgets, income statements, and cash flow statements.

Offer insights into budgeting, forecasting, and making financial decisions.

Enhance understanding of the relationship between operational activities and financial results.

Strengthen participants' ability to communicate effectively with financial teams and stakeholders.

Program Content:

Introduction to Finance:

Overview of financial terms

Importance of financing in managerial roles

Introduction to financial data

Understanding revenues, costs, and profits

Basic financial ratios

Financial statements exercise

Income Statement and General Budgets:

Breaking down the income statement

Understanding the general budget

Assets vs. liabilities vs. equity

Exercises on the income statement and general budget

Reviewing financial ratios

Cash vs. accrual accounting

Reading Financial Data:

In-depth analysis of the income statement

Exploring the general budget

Understanding the cash flow statement

Interrelationships between financial data

Recognizing healthy financial indicators vs. unhealthy ones

Introduction to financial ratios

Budgeting and Forecasting:

Importance of budgeting

Methods and processes of budget preparation

Variance analysis: actual vs. expectations

Capital budgeting and project evaluation

Role of assumptions in forecasting

Common budgeting errors and how to avoid them

Cost and Profit Management:

Fixed costs vs. variable costs

Break-even analysis

Pricing strategies and profitability

Cost distribution and overheads

Marginal cost and decision-making

Profit analysis and cost-volume-profit analysis

Working Capital Management:

Importance of liquidity

Managing accounts receivable and payable

Inventory management techniques

Fundamentals of cash management

Understanding the operating cycle

Short-term financing options

Investment Decisions and Project Evaluation:

Basics of capital budgeting

Net Present Value (NPV) and Internal Rate of Return (IRR)

Payback period and other evaluation methods

Non-financial factors in investment decisions

Risks and uncertainties in project evaluation

Introduction to real options

Making Investment Decisions:

Time value of money

Capital budgeting

Net Present Value (NPV) and Internal Rate of Return (IRR)

Risks and returns

Investment decision exercises

Basics of capital structure

Financial Information Delivery:

Financial communication tools

Dashboards and Key Performance Indicators (KPIs)

Effectively presenting financial data

Interpreting financial reports

Group presentation exercise

Effective communication strategies

Cash Flow Reading for Financial Statements:

Concept, importance, stages, and objectives of financial statement analysis

Cash flow reading for income statement accounts

Cash flow reading for the financial center statement

Cash flow reading for the income statement and cash flows

Workshop

Strategic Financial Planning:

Strategic financial planning

Long-term planning vs. short-term planning

SWOT analysis and financial planning

Role-playing exercise: making strategic financial decisions