Course Objective

Financial statements serve as a key communication tool, reflecting a company’s performance and financial health to stakeholders such as shareholders, lenders, regulatory authorities, and employees.

This course is designed to equip non-finance personnel with the foundational knowledge and analytical skills necessary to read, interpret, and assess financial statements. By understanding how financial information is prepared and analyzed, participants will be better positioned to contribute meaningfully to organizational decisions and business strategy.

Learning Outcomes

By the end of the programmed, participants will be able to:

Comprehend

• The nature and purpose of financial statements.
• How business transactions are measured, recorded, and reported.

Develop

• The ability to read and understand basic financial statements.
• Analytical skills for interpreting financial performance and position.
• Skills to suggest actions for improving financial results.
• Confidence in communicating with finance and accounting personnel.
• A basic understanding of financial forecasting and cash flow management.

Appreciate

The value and limitations of financial statements as a decision-making tool.

Target Audience

This course is ideal for personnel in non-financial roles, including:

• Sales & Marketing
• Administration & Human Resources
• Operations & Engineering
• Purchasing & IT
• Entrepreneurs and business owners with limited financial knowledge are also encouraged to attend

COURSE OUTLINE

Module 1: Introduction to Accounting & the Double Entry System

• What is Accounting and Why It Matters
• The Accounting Process in a Business Context
• The Accounting Equation Explained
• Analyzing Transactions and Their Impact
• Understanding the Double Entry System:
  • Assets, Liabilities, Capital, Revenue, and Expenses
  • Recording Transactions and Extracting a Trial Balance
• Practical Activity: Recording simple Transaction

Module 2: Year-End Adjustments in Financial Reporting

• Cash vs. Accrual Accounting Methods
• The Matching Principle and Its Importance
• Year-End Adjustments:
  • Accruals and Prepayments
  • Depreciation: Concepts, Calculation, and Recording
• How Adjustments Affect Financial Statements
• Preparing Adjusted Financial Statements
• Practical Activity: Preparing Financial Statements With Adjustments

Module 3: Analyzing Financial Statements

• Interpreting Key Financial Ratios:
  • Profitability Ratios
  • Efficiency Ratios
  • Liquidity Ratios
  • Gearing (Leverage) Ratios
• Understanding What the Numbers Tell You
• Practical Case Study: Financial Ratio Analysis

Module 4: Forecasting & Cash Flow Management Using Financial Data

• The Role of Financial Statements in Business Forecasting
• Using the Percentage-of-Sales Method
• Forecasting Financing Requirements
• Understanding the Cash Conversion Cycle and Operating Cycle
• Practical Activity: Forecasting and Cash Flow Analysis