Accounting and Finance (for Non-Financial Managers)

Every successful person in the workplace utilizes financial information to aid effective decision making. Accounting and Finance for Non-Financial Managers explain the financial concepts and accounting processes used in most businesses and will provide practical techniques that will increase your effectiveness and career. Get a foundation to understand the seven steps in the accounting cycle and use financial information in decision making. Come away with the knowledge to analyze resource allocation and evaluate financial performance.

Unit 1: Introduction to Finance

• The Vocabulary of Finance
• The Four Basic Elements of Finance
• The Basic Financial Statements

Unit 2: Introduction to Accounting

• Basic Terminology
• The Purpose of Accounting
• The Accounting Cycle
• Preparing Financial Statements

Unit 3: Managing Liabilities

• Overview of Liabilities
• The Liabilities of a Business
• Short-Term Liabilities
• Long-Term Liabilities

Unit 4: Financial Planning

• Overview of Financial Planning
• The Importance of Financial Planning
• The Business Planning Process

Cash is arguably the most important factor in business success. D&B reports 90% of all small business failures are due to poor cash flow—more money gets paid out than collected. It is the non-financial manager who really makes a difference in the day-to-day cash activities. Discover how to maximize cash flow, learn the importance of cash and find out your role in cash flow success.

Unit 1: Cash Flow Strategies

• Why cash is so important in business
• What are the cash-critical stages in business
• What internal sources of cash are possible
• What potential external sources of cash there are

Unit 2: Reporting and Evaluating Cash Flow

• Review of the Cash Flow Statement
• Review of Projected Cash Flow Report
• What the Cash Cycle communicates
• What improvements can be made to shorten the cash cycle
• Calculating cash cycle

Unit 3: Projecting Cash Needs

• How much cash the business needs
• When cash injections are needed
• Which cash needs will internal sources be able to cover
• Which cash needs must be met through external sources
• Making comparisons with other businesses in the same industry

Unit 4: Funding Requests

• What debt sources of cash are possible
• What are the potential equity sources of cash
• What requirements different funding sources have
• Making a pitch to investors
• Approaching potential lenders for financing

With the demands of daily operations, non-financial managers may put financial reports on the shelf. But take a look at some of the most admired companies like Apple, Google, and Berkshire Hathaway. Sure, they are evaluated by their products, innovation, and culture but they wouldn’t be in the limelight without profits. Money matters! This course will help you build on your understanding of financial concepts and help you establish your role in the financial success of your organization.

Designed for non-financial managers, business owners, entrepreneurs, and other decision-makers, this advanced course will take the mystery out of money matters. Throughout this course, financial information that drives your organization, as seen on the business’s reports, will be assessed and analyzed to understand it. An understanding of this information will help you make smart decisions when it comes to budgeting, setting goals, and assessing performance within your own area of influence.

Unit 1: Financial Strategies

1. Your Role in Financial Decision Making
   1. Who is responsible for the financial decisions in your company?
   2. The Goal of Business
2. Understand the Language of Finance
   1. Accounting as a Language
   2. Learn the Language
   3. Visual Activity – Accounting Process
   4. Accounting and Recordkeeping Systems
   5. Self Check – Account Categories
3. Read the Story
   1. A Word about Financial Concepts
      1. Financial Concept: The Accounting Equation
      2. Financial Concept: The Matching Principle
   2. The Common Financial Statements
   3. Income Statement
   4. The Balance Sheet
   5. Statement of Cash Flows
4. The Purpose of Financial Statements

Unit 2: Financial Dashboard – Introduction to Financial Gauges

1. Understand Basic Financial Concepts
   1. Introduction
   2. The Story Statements Tell
      1. Financial Concept: The Accounting Equation
      2. Financial Concept: The Profit Matching Principle
      3. Financial Concept: The Fund Matching Principle
      4. Financial Concept: Cash Basis vs. Accrual Basis Accounting Methods
      5. Financial Concept: Cash vs. Profits
      6. Financial Concept: Debt vs. Equity (Optimum Capital Structure)
2. Financial Strategies
   1. Financial strategies stem from business goals
   2. Take a Look: Example Financial Strategies
3. Financial Gauges
   1. Introduction to Financial Gauges
   2. Your Financial Gauges
   3. Profitability-based gauges
   4. Performance-based gauges
4. Reading Your Financial Gauges
   1. The Story Financial Gauges Tell
   2. Research and Analysis

Unit 3: Financial Gauges - Profitability

1. Profitability Gauges
   1. Ratio Analysis
   2. Financial Gauge: Net Profit Margin (or) The Bottom Line
   3. Financial Gauge: Gross Profit Margin
   4. Financial Gauge: Operating Margin
   5. Using Profitability Ratios
2. The Components of Profitability
   1. The Origin of Profits
   2. Sales and Expenses
3. Sales
   1. Sales Strategies
   2. Pricing Strategies
4. Cost of Goods Sold and Cost of Sales
   1. Cost of Goods Sold
   2. Gross Profit Margin
   3. Gross Profit Analysis and Planning
   4. Evaluate Profitability of Product or Service Lines
5. Expenses
   1. Budget vs. Actual Analysis
   2. Cost Management and Efficiency

Unit 4: Financial Gauges - Performance

1. Making Money
   1. The Goal of Business
   2. Value Growth
   3. Company Resources
2. Taking Advantage of Assets
   1. Tangible vs. Intangible Assets
   2. Cash
3. Making the Most of Liabilities and Equity
   1. Liabilities
   2. Equity
4. Performance Financial Gauges
   1. Financial Gauge: Current and Quick Ratio (Liquidity)
   2. Financial Gauge: Return on Assets
   3. Financial Gauge: Return on Equity
   4. Financial Gauge: Debt to Equity Ratio
5. Financial Analysis and Planning Summary
   1. Downtown Publishing Financial Performance Analysis
   2. Summary