Business Finance

Introduction:

This course aims to enable learners to have an understanding of the preparation of numerical, graphical, and financial formats sufficient to provide useful information for management needs in monitoring, decision making, and problem-solving.

Targeted Groups:

• Managers (non-financial roles)
• Team Leader
• Accounts Assistant
• Accounting Technician
• Office Administrator
• Clerical Assistant

Course Objectives:

At the end of this course the participants will be able to:

• Know how to prepare business budgets
• Understand budget deviations and variances
• Know how a business may maintain liquidity
• Prepare costing information for business
• Record stock movements in a business
• Understand principles of credit control
• Understand how to use business performance indicators
• Gain an internationally recognized qualification
• Develop essential skills to enhance their position within the workplace
• Be able to work more effectively with colleagues
• Develop the ability to prepare and manage budgets effectively
• Appreciate the need for liquidity and stick management
• Improve the knowledge and qualifications of their staff

Targeted Competencies:

• Budget Preparation
• Sales Budgets
• Production Budgets
• Cash Budgets
• Capital Budgets
• Budget Management including “What If, Sensitivity Analysis and Budget Control including Variance Analysis
• Liquidity Management and the assessment of risks
• Methods of Stock Control
• Performance Measurement to improve performance, liquidity, and profitability

Course Content:

Unit 1: Preparing Business Budgets:

• Calculate increases and decreases in quantities and money value of materials
• Calculate increases and decreases in hours, wage rates and labor costs
• Calculate increases and decreases in expenses
• Calculate increases and decreases in amounts and money value of income
• Make allowance for the timing of receipts and payments arising from credit transactions
• Prepare sales, production, materials, labor, expenses and cash budgets

Unit 2: Managing Budgets - Budget Deviations/Variances and Costing:

• Identify variances (deviation) between actual outcomes and budget information
• Calculate variances (deviation) between actual and budget data
• Identify fixed, variable, direct and indirect costs
• Extract data about income and expenditure from given information
• Prepare estimates and job costs
• Check estimates and job for accuracy

Unit 3: Liquidity Management:

• Identify how a business may maintain a level of liquidity following cash budgets and forecasts
• Invest surplus funds
• Investment risk
• Obtain loans and obtain overdrafts
• Interest rate risk
• Recent events in the banking and financial markets

Unit 4: Stock & Credit Control: 

• Apply stock valuation methods to record the movement in stock using First In, First Out (FIFO), Last In, First Out (LIFO), and Weighted Average Cost (AVCO) perpetual method.
• Calculate cost information
• Explain the benefits and risks of providing credit
• Calculate credit prices and compare them with cash prices
• Use an age analysis of debtors to determine appropriate action in accordance with given policies and circumstances
• Calculate average periods of credit given and bad and doubtful debts

Unit 5: Measuring Performance:

• Key performance indicators
• Extract and organize information into an appropriate form from data provided in tables or graphical format
• Calculate performance indicators measuring customer growth, satisfaction, quality of service, efficiency, effectiveness, and productivity.
• Prepare information about financial and non-financial performance in graphical format - line graphs, bar charts, and pie charts
• Compare performance indicators/trends over time and benchmark information against comparative organization or collected industry-relevant data
• Financial ratio analysis