All line managers need to develop their own work programmes, based on a hierarchy of prioritised activities that add value to the core drivers on the organisation's value chain. This module provides an introduction to understanding the accounting fundamentals that underlie the construction of financial statements to the extent that the manager is able to analyze and interpret financial reports in addition to detecting and taking corrective action on adverse variances revealed in the quarterly performance to budget reports. Also, the course will increase the managers' literacy on the global financial and accounting issues, disseminated daily by the print and electronic media, and which affect not only the performance of the real economy, but also the customers. The course introduces a variety of theoretical concepts, which link accounting and finance to other disciplines, whose understanding is essential for upgrading the quality of decision making on the organization's value chain.
WHO SHOULD ATTEND?
Functional directors and senior managers with direct responsibility for activity budget formulation, management, control, performance reporting, evaluation and feed-back; Middle level managers aspiring for senior management positions in their respective organisations.
HOW PARTICIPANTS WILL BENEFIT
At the end of the course participants will be able to:
- Appreciate the theoretical assumptions behind various accounting techniques and the application of those techniques in drawing up financial statements;
- Analyse and interpret financial statements, thereby being able to delineate the profit, liquidity and debt-servicing position of their organisation;
- Detect defects in audited financial statements and thereby drawing the attention of the management team to any material errors in financial statements;
- Apply costing and pricing techniques to own departmental work-programmes, sub-programmes and activity drivers and thereby logically compiling, monitoring and evaluating own activity-based budgets;
- Apply principles to entrench performance management culture in the organisation;
- Communicate more effectively in business situations with stakeholders and managers;
- Recognise the limitations of accounting and how financial techniques may need to be supplemented with other approaches.
- Fundamental accounting principles and conventions;
- Financial ratio analysis: profitability, liquidity, gearing and debt service;
- Introduction to management accounting and relevant costs for decisions;
- Cost classification, cost behaviour and C-V-P analysis;
- Compiling an activity based budget for the division, department or section;
- Using the budget as a tool for planning, management, control, monitoring, evaluation and feed-back;
- Overview of working capital management: cash, debtors, stocks, prepayments, bank loans, creditors and accrued expenses;
- Overview of business planning and capital budgeting;
- Accessing debt and equity instruments in the capital and money markets;
- Responding to challenges and opportunities in the global financial markets.