Programme outline
Understand the basic principles and terminology of finance. Apply this knowledge to decisions you take which affect your work. Improve your ability and confidence in preparing and controlling budgets.

Who should attend?
Managers who need to understand the language and basic principles of finance in organisations and who wish to feel confident with budget preparation.

Learning method
Highly participative and action-oriented.

Programme content

Day 1
Welcome and introduction
What are the problems we face with understanding financial information (at work, in the media etc)?
Group work to produce a checklist of needs to be met within the workshop
Accounting principles
Distinguishing the difference between cash flow and profit. The structure and purposes of the P&L account (to assess viability) and the balance sheet (to measure wealth). Income and expenditure accounts for non-profit-making organisations.
How depreciation works
Use of simple examples in plenary to illustrate these points.
Case study
How the cash account, P&L and balance sheet work in practice. The influence of volume on changes in profit level.
Exercises in pairs/trios
Management accounting and profit
Contribution theory: the benefits and dangers of this approach to measuring the benefits of extra volume obtained through competitive pricing.
Case study examples
Review
An opportunity to recap the basic points covered so far, with the aid of a video, The Balance Sheet Barrier.
The format of published accounts
How annual reports are laid out and how to interpret the jargon. Group work on analysing case study formation.

Day 2
Review session
A brief recap of the ground covered on Day 1 and creation of a springboard for Day 2.
Financial ratios
Their use as a financial health check and as a planning aid. A detailed look at some of the more significant ratios and their application to case study material (group work).
Budgeting
How budgets relate to other corporate planning procedures. Best practice in organising the budgeting process.
Case study exercise (in syndicate groups).
Capital investment
How this is budgeted and approved: the techniques of Payback Period, ROI and DCF, including Net Present Value and Internal Rate of Return.
Group work in pairs and trios.
Final review
Any outstanding points from our original checklist of needs. How will we share our improved understanding of financial information with our staff and colleagues?
Plenary discussion of actions we can take.