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Finance for the Non-Financial Executive

2 Days Classroom Session
Private Onsite Package

This course can be tailored to your needs for private, onsite delivery at your location.

Request a Private Onsite Price Quote

Professional Credits


ASPE is an IIBA Endorsed Education Provider of business analysis training. Select Project Delivery courses offer IIBA continuing development units (CDU) in accordance with IIBA standards.


Select courses offer Leadership (PDU-L), Strategic (PDU-S) and Technical PMI professional development units that vary according to certification. Technical PDUs are available in the following types: ACP, PBA, PfMP, PMP/PgMP, RMP, and SP.


This workshop will demystify terms and financial practices that are most used in business today. You will examine and experience in detail the financial information and practices you need, presented in easy to understand terms and concepts. Brick by brick, you will be exposed to the framework of the finance and accounting principles that make a company run, measure results and make profit. You'll also know how to "speak the language" of your Finance and Accounting staff and more clearly plan your financial goals. After two days, you can confidently make better informed financial decisions that will affect your department and your career.

Gain a clear understanding of how each department or resource within your firm operates from a financial standpoint. From balance sheets, financial statements to annual reports – you'll examine and interpret with ease. You'll be able to look at an annual report and know what it all means. You'll know what questions you need to be asking and the financial objectives and financial results you need to achieve.

Understand the fundamental concepts and terms of corporate finance and develop a well-rounded working knowledge of the Finance and Accounting principles that make a business run.
Better understand the financial risks and benefits of your high level financial decision-making
Better determine financial weaknesses and opportunities for growth and profit
Know the intricacies of a Master Budget - how department budgets interact
Gain a thorough understanding of the complete accounting life cycle – income statement, statement of shareholders equity and the balance sheet
Discover how the time value of money influences project selection, capital budgeting, stock and bond valuation and valuation models
Develop better financial tracking skills to help you achieve financial objectives
Quickly interpret and understand the terminology of any Financial Statement and be able to make a good business decision based on the financials
Know what questions you should be asking of your Accounting and Finance Professionals in your organization.
Understand business valuation techniques and the concepts and mathematics involved
Upcoming Dates and Locations
All Live Online times are listed in Eastern Time Guaranteed To Run

There aren’t any public sessions currently scheduled for this course, but if you fill out the form below, we can tell you about how we can bring this course to you!

Course Outline

1. Accounting Fundamentals
The first section of the course presents the essential concepts and terminology of the accounting profession. The accounting equation is introduced as the foundation for both the analysis of financial transactions and for the General Journal and General Ledger as the means of recording those transactions.

  • The Role of Accounting
  • Types of Accounting
  • Management Accounting
  • Financial Accounting
  • The Accounting Equation
  • Accounts
  • Self-Checking Property
  • Debits and Credits
  • Accounting Books
  • The General Journal
  • General Journal Rules
  • Accounts

2. The Accounting Cycle
Once the financial transactions have been analyzed and recorded, the accounting cycle is not complete until those transactions have been summarized and reduced to forms that can be read and interpreted by financial analysts and the firm's management.

  • The Accounting Cycle
  • The Three Financial Statements
    • Income Statement
    • Statement of Shareholder Equity
    • Balance Sheet
  • Retail Firms
  • Gross Margin
  • Income Statement
  • Manufacturing Firm
  • Three Types of Inventory
    • Materials
    • Work-in-Process
    • Finished Goods
  • Cost Flows for a Manufacturing Company
  • Corporate Financial Statements - Contributed Capital
  • The Corporate Balance Sheet

3. Analyzing Financial Statements
Once the accountants have produced the financial statements, analysts utilize financial ratio analysis as a first step in analyzing these statements. In preparation for this analysis, a fourth financial statement, the statement of cash flows, is introduced.

  • Purposes and Methods of Financial Statement Analysis
  • The Statement of Cash Flows
  • Liquidity Ratios
    • Current Ratio
    • Quick Ratio
    • Cash Ratio
  • Solvency Ratios
    • Total Debt Ratio
    • Times Interest Earned
  • Asset-Utilization Ratios
    • Inventory Turnover
    • Days' Sales in Inventory
    • Receivables Turnover
    • Days' Sales in Receivables
  • Profitability Ratios
    • Profit Margin
    • Return on Assets
    • Return on Equity
  • Du Pont Chart
  • Annual Reports
  • Governmental Requirements
  • Auditor's Opinion
  • Footnotes

4. Return on Invested Capital
Return on Invested Capital (ROIC) is a means often used by both managers and investors of visualizing the quality of the firm's earnings. Specifically it calculates the efficiency of the firm in allocating its capital to profitable investments. It is a useful tool for assessing the overall performance of the firm and is a useful addition to financial ratio analysis.

  • Purpose of ROIC
  • Relation to Du Pont Analysis
  • ROIC versus ROE
  • ROIC Calculations
  • ROIC Formula

5. Financial Forecasting
A firm's financial statements provide the preliminary information necessary to help determine the financial needs for the coming fiscal year. The pro forma income and balance sheets are introduced as tools used to forecast the increase in assets required to meet various levels of financial growth.

  • Pro Forma Balance Sheet and Income Statement
  • External Financing Requirements
  • Internal Growth Rate
  • External Growth Rate
  • The Financial Forecasting Model
  • Percentage of Sales Approach: The Pro Forma Income Statement
  • Dividend Policy
  • Retained Earnings
  • Percentage of Sales Approach - The Pro Forma Balance Sheet
  • External Financing Requirements - Formula Approach
  • Sustainable Growth Rate

6. Time Value of Money
The Time Value of Money model recognizes that, because of the opportunity costs involved, a dollar in the future is not worth as much as a dollar in the present. Present value concepts are developed from the familiar compound interest formula, and the use of net present value as a means of comparing cash flows is illustrated.

  • Time Value of Money
  • Compound Interest Formula
  • Future Value
  • Future Value - Rule of 72
  • Present Value
  • Net Present Value
  • Annuities
  • Present Value of an Annuity
  • Internal Rate of Return (IRR)
  • Analyzing Project Investments

7. Project Analysis and Selection
Net present values and internal rate of return methodologies can be used to evaluate the economic viability of a project and to select between alternative projects. This section of the course applies these methods to the various cash flows that are important in analyzing potential projects (changes in depreciation methodologies, increases/decreases and returns of working capital, salvage value, etc.)

  • Project Cash Flows
  • Incremental Cash Flows
  • Evaluating Net Present Value Estimates

8. Risk and Return
The financial decisions of the firm are made against a backdrop of uncertainty, thus it is necessary that risk be factored into financial analysis. The risk analysis model is based upon a differentiation between business and market risks that relates only appropriate risk to the return on an investment.

  • Risk versus Return
  • Risk versus Return Using T-Bills
  • Security Market Line
  • Required Rate of Return Formula

9. Cost of Capital
Raising money for the operation and growth of the firm has a cost. Decisions about what projects to fund, how fast the firm should grow, and where capital should be raised all depend upon the cost of that capital. The sources of capital are discussed along with the characteristics, advantages, and disadvantages of each.

  • External Financing Sources
  • Types of Bonds
    • Mortgage Bonds
    • Debentures
  • Bond Terminology
  • Characteristics of Preferred Stock
  • Characteristics of Common Stock
  • Target Capital Structure
  • The Weighted Average Cost of Capital (WACC)
  • Determining the Capital Budget
  • The Security Market Line and the WACC
  • Raising Capital
  • Financial Leverage
  • Leverage and the Capital Structure
  • Corporate Taxes and Capital Structure

10. Introduction to Management Accounting
Financial information can be used for managerial decision making as well as for financial analysis. Management accounting begins with the development of the relationship between cost, volume, and profit. The cost-volume-profit formula can be utilized as the basis for profit planning and breakeven analysis.

  • Cost Behavior
  • CVP Equation
  • Profit Planning
  • Breakeven Analysis

11. Introduction to Budgeting 
The budgeting process is built around the master budget. The master budget integrates the many subsidiary budgets to produce not only budgetary figures but also a set of pro forma financial statements. These forms can be analyzed to determine the value of the financial decisions and assumptions underlying the budget.

  • Purposes/Benefits of Budgeting
  • Master Budget
  • Subsidiary Budgets
    • Sales Budget
    • Selling Budget
    • Production Budget
    • General and Administrative Budget
    • Capital Budget
    • Cash Budget
  • Pro Forma Statements
  • Pro Forma Income Statement
  • Balance Sheet (Beginning)
  • Pro Forma Balance Sheet

12: Variance Accounting
In comparing actual versus budgeted numbers, total figures can be misleading if the components of those totals are not considered separately. Variance accounting was developed to allow managers to analyze budget performance in just such a manner. Using variance accounting to evaluate project performance (schedule and cost) presents a special set of issues that must be considered.

  • Responsibility Accounting
  • Variance Accounting
  • Flexible Budget
  • Flexible Budget in Graphical Form
  • Earned Value Analysis
    • Planned Value (PV)
    • Actual Cost (AC)
    • Earned Value (EV)
  • Variances
    • Schedule Variance
    • Cost Variance
  • Performance Indexes
    • Cost Performance Index
    • Schedule Performance Index
  • Estimate at Completion

13. Class Wrap Up and Discussion

Who should attend

This high-level program is designed by a seasoned financial professionals to not only give you the financial background and tools you need – but to help you use those financial tools as a manager or executive – to make those important decisions. Those who will benefit include:

  • Vice Presidents
  • General Managers
  • Department Managers
  • Directors
  • Top executives in all areas of Sales, Marketing, Service Organizations, Manufacturing
  • Anyone involved in the financial decisions of your organization

If your expertise has not included a consistent grounding in financial and managerial accounting practices and concepts – you'll benefit greatly.