In today’s business world, you have to have financial savvy! Strong financial management is crucial to the success of a business and every manager is accountable for the bottom line! All managers need to know how to justify a budget request, quantify their contributions and identify profit drains immediately. This workshop for non-financial managers will familiarise you with the key concepts of finance and accounting and help you prepare and manage budgets with confidence 


Levels: Essentials Intermediate Advanced

Course Outline

 Session 1: Overview of Financial Management 

  • Classification of the Financial Information of the Organisation 
  • Understanding the Trial Balance 

Session 2: Understanding of Financial Statements 

  • Cost-Benefit Principle 
  • Risk-return Principle 
  • Time-value-of-money Principle 
  • The Basic Financial Statements 
  • Income Statement 
  • Drawing Up an Income Statement 
  • The Balance Sheet 
  • Drawing Up a Balance Sheet 
  • Balance Sheet Template 
  • The Cash Flow Statement 

Session 3: Analysis and Interpretation of Financial Statement 

  • Profitability Ratios 
  • Gross Profit Margin 
  • Net Profit Margin 
  • Return on Equity 
  • Liquidity Ratios 
  • Current Ratio 
  • Quick (Acid Test) Ratio 
  • Activity Ratios 
  • Inventory Turnover 
  • Debtors Collection Period 
  • Creditors Collection Period 
  • Total Asset Turnover Ratio 
  • Solvency Ratios 

SAQA US ID: 252040 – Manage the finances of a unit 

 SAQA US ID: 242810 -Manage Expenditure against a budget 

 Session 4: Budgeting Process 

  • Functions of a Budget 
  • Planning 
  • Control 
  • Performance Evaluation 
  • Motivation 
  • Communication 
  • Stages of the Budgeting Process 
  • Communicating the details of the budget policy 
  • Determination of factors that restrict performance 
  • Creating a Budget 
  • Preparation of the Sales Budget 
  • Initial preparation of the various other budgets 
  • Negotiation of budgets with supervisors 
  • Co-ordination and review of budgets 
  • Final acceptance of the budgets 
  • Ongoing review of the budgets 
  • Master Budgets and their Components 
  • Sales Budget 
  • Expenses Budget 
  • Cash Budget 

Session 5: Forms of Financing 

  • Short–Term Financing 
  • Trade Credit 
  • Bank Credit 
  • Bankers Acceptance 
  • Factoring 
  • Intermediate Financing 
  • Term Loans 
  • Leases 
  • Long-Term Financing 
  • Bank Loans 
  • Debentures 
  • Sources of Equity Financing 

Session 6: Capital Budgeting and Managing Working Capital

  • Importance of capital budgeting decision
  • Capital Budgeting Techniques
  • Payback Period
  • Accounting Rate of Return
  • Net Present Value
  • Working Capital
  • Net Working Capital
  • Working Capital Policy
  • Moderate or Maturity Matching Approach
  • The Aggressive Approach
  • The Conservative Approach
  • Working Capital Management
  • Managing Cash
  • Reasons for holding cash
  • Measuring whether the Credit Policy is Effective

Get the course outline PDF