Accounting and Finance for Managers

Course Description

This comprehensive finance course, "Accounting and Finance for Managers," is designed to equip managers with essential accounting and financial knowledge crucial for effective business management. The course provides a deep dive into financial statements, accounting principles, and cost management techniques, transforming participants into confident leaders capable of handling financial matters in the workplace.

What students will learn

  • Reading and interpreting financial statements (balance sheet, income statement, and cash flow statement)
  • Understanding key accounting terminology and concepts
  • Analyzing business performance through financial statement analysis
  • Mastering the four fundamental drivers of profitability: asset management, cost management, leverage management, and tax management
  • Cost management techniques, including product costing, budgeting, and budgetary control
  • Decision-making skills using cost analysis

Prerequisites

An overall understanding of the business environment is required. This intermediate-level course is suitable for managers who have some basic knowledge of business operations but want to enhance their financial acumen.

Course Content

  • Mechanics of Financial Accounting
  • Reading and Understanding Financial Statements
  • Financial Statement Analysis and Ratio Analysis
  • Product Costing Methods
  • Cost Analysis for Decision Making
  • Budgeting and Variance Analysis
  • Generally Accepted Accounting Principles (GAAP)
  • Cash Flow Management
  • Break-even Analysis
  • Activity-based Costing

Who this course is for

  • Managers seeking to improve their financial literacy
  • Professionals aiming to advance their careers into senior management roles
  • Business owners who want to better understand their company's financial health
  • Anyone interested in gaining a solid foundation in accounting and finance for managerial purposes

Real-world Applications

  • Communicating effectively with finance departments, bankers, suppliers, and tax authorities
  • Making informed business decisions based on financial data
  • Evaluating the financial health of a company or potential business partners
  • Developing and managing budgets more efficiently
  • Identifying areas for cost reduction and profit improvement
  • Assessing the financial impact of strategic business decisions
  • Presenting financial information to stakeholders with confidence

Syllabus

Week 1: Mechanics of Financial Accounting

  • Introduction to financial accounting
  • Generally Accepted Accounting Principles
  • Fundamental accounting equation
  • Recording financial transactions
  • Preparation of accounting statements

Week 2: Reading Financial Statements

  • Understanding balance sheets, income statements, and cash flow statements
  • Familiarizing with common accounting terms in financial statements

Week 3: Financial Statement Analysis

  • Ratio analysis
  • Understanding the relationship between four profitability drivers
  • Assessing financial health through credit scoring models

Week 4: Product Costing

  • Preparation of Cost Sheets in manufacturing and service industries
  • Job and process costing
  • Activity-based costing

Week 5: Cost Analysis for Decision Making

  • Behavior of costs
  • Break-even analysis
  • Relevant costing approach for various decision-making scenarios

Week 6: Budgeting and Variance Analysis

  • Preparation of operational and financial budgets
  • Comparing actual performance against budgets
  • Price and quantity variance
  • Controllable and non-controllable variance
  • Revenue and contribution variances

This course offers a transformative experience that will empower managers to confidently navigate the complex world of accounting and finance, setting them up for success in their current roles and future career advancements.