Fundamentals of Finance

Outline

This programme is designed to send you back into your businesses confident in your understanding and application of basic financial terms and concepts. It will help you answer questions such as:

• Cashflow, EBIT, margin, capital – what exactly are these and why do they matter?
• Budgets – where do those numbers come from?
• How can I intelligently play my part in the financial wellbeing of the company I work for?
• How do I avoid stress in conversations around finance?

Course Objectives

You will leave with the ability to:

• Manage working capital and cash flow better
• Maximise profitability
• Be able to read financial statements
• Be able to interpret the figures
• Understand jargon used in the financial world and confidently have conversations with others
• Make better informed decisions

Course Content

The business model

• A memorable model of how businesses work financially
• Sources of capital
• Gearing and its implications for external perception and taxation
• Fixed and variable costs
• Tangible and intangible fixed assets
• EBIT/DA
• How to optimise working capital and cash flow – theory followed by action planning on the way that you can influence your business

Profitability

• A simple model to indicate how to maximise profit
• Gross and net profit
• Contribution
• Retained profit
• Margin and breakeven

Understanding published accounts

• Using the accounts of a well-known company, we will show you how to read profit and loss accounts and the balance sheet
• We will look at some of the ratios used to analyse the figures to review performance, followed by a simple activity to enable you to use your new knowledge

Personal preparation

• Watch the news and listen to what is happening out there – we can explain what is going on
• Read the financial pages in the press
• Think about what is being talked about within your business

*Membership from £100+VAT per annum - join now and save on training