Course Description
Money matters can be intimidating for even the most capable managers, but understanding the basics of finance is essential for making informed decisions. This course demystifies financial terms, reports, and tools so managers can confidently interpret data, manage budgets, and align financial results with operational goals.
Through interactive discussion and practical exercises, participants will learn how to read and analyze financial statements, link financial performance to operational decisions, prepare and manage budgets, and assess financial risks. Special attention is given to how costs flow through the business and appear on financial statements, making the concepts directly relevant to manufacturing, operations, quality, and engineering managers.
Course Objectives
Understand Key Financial Concepts:
– Recognize common accounting terms such as assets, liabilities, payables, receivables, and depreciation
– Understand how operational activities—such as production, purchasing, and inventory—flow through the balance sheet, income statement, and cash flow statement
Interpret Financial Reports:
– Read and understand the Balance Sheet, Income Statement, and Cash Flow Statement
– Explain how these reports reflect organizational health and operational performance
– Recognize how inventory valuation and costing methods impact reported results
Analyze Financial Performance:
– Apply ratio analysis, variance analysis, and other tools to evaluate performance
– Identify how business activities and cost drivers influence standard financial ratios
– Differentiate between fixed and variable costs and understand overhead allocation
Plan and Manage Budgets:
– Develop realistic budgets aligned with organizational goals
– Monitor performance against budget and adjust as needed
– Apply forecasting techniques to anticipate future performance
Make Informed Business Decisions:
– Evaluate purchasing, investment, and staffing decisions using financial data
– Understand the relationship between risk, reward, and operational impact
Training Format
– 1 Day: Morning session covers financial concepts, statements, and cost flows; afternoon session focuses on analysis, budgeting, and applying financial data to business decisions
