Introduction:

This course brings together important areas of financial management, planning, and control
It provides an understanding of the various aspects of an organization from a calculative aspect to other related practices in the organization. The key element of the course is the focus on the practical application of financial models and analysis, which are used to assess the strategic and operational positions of the organization.

Objectives:

At the end of this conference the participants will be able to: 
Understand strategic planning and budgeting.
Link finance and operations for budgeting purposes and strategy execution.
Learn how to build a comprehensive performance measurement system.
Learn costing and budgeting terminology used in business.
Understand the importance of a well-defined costing and budgeting process.Understand cost behavior more accurately.

Course Outline:

Unit 1: The Challenge of Financial Economic Decision-Making:

  • The practice of financial-economic analysis
  • Corporate value and shareholder value
  • A dynamic perspective of business Benchmarking your own strategic position/competitor analysis
  • The agency problem and corporate governance
  • What information and data to use?
  • The nature of financial statements
  • The context of financial analysis and decision-making.

Unit 2: Assessment of Business Performance:

  • Ratio analysis and business performance
  • Management’s point of view
  • Owners’ point of view
  • Lenders’ point of view
  • Ratios as a system – pyramids of ratios
  • Integration of financial performance analysis – the Dupont system
  • Economic value added (EVA)
  • Predicting financial distress.

Unit 3: Projection of Financial Requirements:

  • Interrelationship of financial projections
  • Operating budgets
  • Standard costing and variance analysis
  • Cash forecasts and cash budgets
  • Sensitivity analysis
  • Dynamics and growth of the business system
  • Operating leverage
  • Financial growth plans
  • Financial modeling.

Unit 4: Analysis of Investment Decisions:

  • Applying time-adjusted measures
  • Net present value (NPV) and internal rate of return (IRR)
  • Strategic perspective
  • EVA and NPV
  • Refinements of investment analysis
  • Equivalent annual cost (EAC)
  • Modified internal rate of return (MIRR)
  • Sensitivity analysis, scenario analysis, simulation, and NPV break-even
  • Dealing with risk and changing circumstances.

Unit 5: Strategic and Financial Planning:

  • Financial VS Managerial Accounting
  • Exploring the linkages between strategy, budgeting, costing, and performance measurement
  • Understanding what strategic planning is and why it is important
  • Mission; Vision; Strategy; Goals and Objectives
  • The outside environment and the internal context: SWOT and PESTEL analysis
  • What is happening in your company
  • Looking for the drivers of value creation

Unit 6: Cost Analysis for Budgeting:

  • What is costing? Defining costs
  • Cost behavior – Fixed and variable
  • Breakeven models – The Equation Method
  • The contribution margin concept
  • Direct and indirect costs
  • Traditional VS Activity Based Costing