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THE POWER OF FINANCIAL STATEMENTS – Finance for Non-Financial Executives

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Classroom Sessions:

Date Venue Fee
27-29 May | 2-4 July The Protea Balalaika Hotel, Sandton, Johannesburg ZAR: 11999.00

Online Sessions:

Date Venue Fee
27-29 May | 2-4 July Online via ZOOM ZAR: 8999.00

3 Day Workshop for Public and Private Sectors

Overview

The financial statements are the single most important source of financial information in relation to every business especially when complete and well-prepared, financial statements contain an incredible amount of timely and revealing information about a business’s financial health: Its strengths, vulnerabilities and challenges, whether or not it’s on track and if it’s really making money and as such few decision-makers fully understand financial statements, but those who do hold the power.

The new companies act and other relevant legislation has increased directors and prescribed officers personal liability exposure and corporate responsibilities and it is now imperative that non-financial executives and professionals are empowered to be able to read, understand, interpret and interrogate the financials with confidence so as to able to identify any red flags and financial risk.

This 3 day practical workshop will guide the non-financial executive through the total financial function, how the financial statements are constructed and the understanding of the key elements in the respective financial reports, leading to the analysis and interpretation of financial statements in the key performance and result areas.

KEY FUNDAMENTALS THAT WILL BE CONSIDERED:

  • What are the 7 most important strategic issues in financial statements?
  • The financial structure of the company: debt vs equity
  • What is gearing and leverage?
  • The solvency and liquidity test
  • The difference between profits and liquidity
  • The Finance Function and Assurance Function
  • The key focus areas of financial reporting statements
  • What is working capital?
  • What is EBITDA?
  • What are the key financial ratios and indicators?
  • How does one value a business?
  • What do investors look for in financial statements?
  • What do banks look for in financial statements?

DAY ONE: THE POWER OF FINANCIAL STATEMENTS

Here the focus will be to understand the business model, business activities and how it is managed and measured in terms of financial statements and understanding the accounting equation.

DAY TWO: UNDERSTANDING FINANCIAL STATEMENTS

Here the focus will be to understand the fundamentals of financials and how to understand the 4 principal reports of financial statements

DAY THREE: INTERPRETING FINANCIAL STATEMENTS

Here the focus will be on financial statement analysis and using financials as a management, marketing and negotiating tool

  • The Essential Accounting Records
  • 4 Main Reports of Annual Financial Statements
  • How to Read, Analyse and Interpret Financial Statements
  • Using Financial Statements as a Planning Tool
  • How to Develop a Financial Forecast and Operating Budget
  • Using Financial Statements to Manage Margin and Expenses
  • Using Financial Statements to Improve Cash Flow and Liquidity
  • What Is the Solvency and Liquidity Test and How to Use It
  • Using Financial Statements to Predict Business Failure
  • Using Financial Statements to Grow Shareholder Value
  • Strategic Questions One Needs To Ask In Relation To Your Company’s Financial Statements
  • Analysing and Interpreting the Financial Statements of Your Company

DAY ONE: THE POWER OF FINANCIAL STATEMENTS

SESSION ONE UNDERSTANDING THE BUSINESS MODEL

  • Business Definition, Mission and Goals
  • Types of Businesses
  • Business Model Elements
  • Business Model and Finance
  • Finance Equation

WORKSHOP CASE STUDY: BUSINESS GOALS OF YOUR COMPANY

SESSION TWO KEY FINANCIAL CONCEPTS & TERMS

  • Business and Financial Activities
  • Assets and Liabilities Terms
  • Equity and Capital Terms
  • Income and Expenses Terms
  • Inflows and Outflows Terms

WORKSHOP CASE STUDY: MATCH BUSINESS ACTIVITIES WITH FINANCIAL ACTIVITIES

SESSION THREE FINANCIAL TRANSACTIONS AND FINANCIAL EQUATIONS

  • Business Transactions
  • The Double Entry System
  • The Accounting Equation
  • Balance Sheet Equation
  • Income Statement Equation
  • Cash Flow Equation

WORKSHOP CASE STUDY: BALANCING THE ACCOUNTING RECORDS

SESSION FOUR FINANCE FUNDAMENTALS

  • Sources of Finance and Application of Funds
  • Fixed Capital and Working Capital
  • Sales, Costs of Sales, Expenses and Profitability
  • Cash Flows and Cash Flow Sources

DAY TWO: UNDERSTANDING FINANCIAL STATEMENTS

SESSION FIVE FUNDAMENTALS OF FINANCIALS

  • Purpose of Financial Statements
  • Corporate Legislation Requirements
  • Reporting Standards and Assurance
  • Financial Statement Fundamentals
  • Key Financial Concepts

WORKSHOP CASE STUDY: SOUTH AFRICAN LEGISLATION AND FINANCIAL STATEMENTS

SESSION SIX UNDERSTANDING THE BALANCE SHEET

  • Financial Structure
  • Debt Vs Equity
  • Fixed Capital and Working Capital
  • Liquidity Test

WORKSHOP CASE STUDY: BIRD’S EYE VIEW OF YOUR BALANCE SHEET

SESSION SEVEN UNDERSTANDING THE INCOME STATEMENT

  • Income Statement Construction: Profit and Cost Centres
  • Managing the Margin
  • Profit Planning and Costing
  • Profitability Vs Cash Flow

WORKSHOP CASE STUDY: BIRD’S EYE VIEW OF YOUR INCOME STATEMENT

SESSION EIGHT UNDERSTANDING THE CASH FLOW STATEMENT AND EQUITY STATEMENT

  • Cash Flow Statement Construction
  • Financials and the Value of a Business
  • What the Banks Look for in Financial Statements?

WORKSHOP CASE STUDY: BIRD’S EYE VIEW OF YOUR CASH FLOW STATEMENT AND EQUITY STATEMENT

DAY THREE: INTERPRETING FINANCIAL STATEMENTS

SESSION NINE FINANCIAL STATEMENT ANALYSIS

  • Interrogating the Financials
  • Key Financial Indicators
  • Ratios for Reward and Risk
  • How to Read Financials in 5 Minutes

WORKSHOP CASE STUDY: TOP 7 FINANCIAL INDICATORS

SESSION TEN FINANCIALS AS A MANAGEMENT TOOL

  • Gearing Vs Equity Finance
  • Fixed Overheads Vs Variable Overheads
  • Profit Vs Cash Flow
  • Solvency and Liquidity Test

WORKSHOP CASE STUDY: SOLVENCY AND LIQUIDITY TEST OF YOUR COMPANY

SESSION ELEVEN FINANCIALS AS A MARKETING TOOL

  • Costing Vs Pricing
  • Break Even Analysis Vs Contribution Analysis
  • Trade Discounts Vs Settlement Discounts

WORKSHOP CASE STUDY: 6 WAYS OF DOUBLING THE PROFITS OF YOUR COMPANY

SESSION TWELVE FINANCIALS AS A NEGOTIATING TOOL

  • Financials and the Value of a Business
  • Financials: Performance Management and Rewards
  • What the Investors Look For In Financial Statements
  • What the Banks Look For In Financial Statements