Introduction
- The need to understand finance if you are in marketing and sales
- The relationship between marketing and finance
- The three branches of finance and how each functions in its own sphere of accounting responsibility.
Module 1 - Understanding the Profit & Loss Account
- The meaning of PROFIT
- Why profits differ among industries
- What the P & L does not tell you
- Why do you need a profit and loss statement
- Know the difference between fixed and variable costs
- Know the difference between direct and indirect costs
Module 2 - Reading the Balance Sheet
- The balance sheet - What is it?
- The balance sheet - barrier
- Asset classification
- Liability classification
- Type of capital structure
- Goodwill - an asset worthing nothing
- Shareholders' equity
- Exercise
Module 3 - The Cash Flow Statement
- The defination of cash flow
- Why the need of a cash flow statement
- Why is cash flow statement important
- The aim of a cash flow statement
- Understand the format of a cash flow statement
- Advantages of a cash flow statement
- Exercise
Module 4 - Understanding Variance Analysis & Application
- The defination of variance analysis
- The usefullness of understanding variance analysis
- Exercise
Module 5 - Understanding the Analysis & Application of Financial Ratios
-The benefits of using financial ratios
- The three types of common ratios
- Gearing and its implications to a company
- Exercise
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Module 6 - Budgeting
-The various modes of budgeting
- The seven steps to successful budgeting
Module 7 - Breakdown Analysis
- Why the need to be able to calculate breakeven points?
- The ability to compute breakeven by using mathematic and graphical methods
- Exercise
Module 8 - Forecasting
- The use of the "regression" model to compute sales forecast figures
- Trend analysis
- Exercise
Module 9 - Cash Flow Procjection
- Why the need to carry out cash flow projection
- The cash flow projection format
- Be aware of the company's souces of funds
- Exercise
Module 10 - Depreciation
- Why the need to understand depreciation
- How is depreciation defined in the Statements of Accounting Practice (SSAP)
- The issue on depreciation being accounted for in the P & L (SSAP 12)
- Exercise
Module 11 - Project Appraisal (Return On Investment)
- The need to understand the return on investment on funds approved by management for marketing activities
- Using the Discounted Cash Flow (DCF) model - Net Present Value (NPV), and internal Rate of Return (IRR).
- Exercise
Special Note : During the 4-day session, participants will be provided with live financial statements of on-going concerns as part of the hands-on exercises.
Duration : 4 Days
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