Business Finance Fundamentals
Course Overview
This course provides non-finance professionals and emerging business leaders with a solid grounding in the principles of business finance. Participants will learn how to interpret financial statements, manage budgets, analyze costs, and make informed financial decisions that drive business success. It demystifies core financial concepts and connects them to real-world business scenarios.
Through practical examples and interactive exercises, participants will gain the confidence to engage in financial discussions, understand key performance indicators (KPIs), and contribute to the financial health of their organizations.
Course Objectives
By the end of the course, participants will be able to:
- Understand basic financial concepts, terminology, and frameworks
- Interpret and analyze the three main financial statements: income statement, balance sheet, and cash flow statement
- Apply budgeting techniques and financial planning tools
- Identify cost structures and perform break-even analysis
- Evaluate business performance using key financial ratios
- Make informed financial decisions and assess business risks
- Understand the financial implications of operational and strategic choices
Who Should Attend
This course is ideal for:
- Non-financial managers and team leaders
- Entrepreneurs and small business owners
- Project managers and analysts
- Administrative and operational staff involved in budgeting or reporting
- Anyone seeking to strengthen their understanding of business finance
Course Outline
- Introduction to Business Finance
- What is business finance and why it matters
- Financial vs. managerial accounting
- The role of finance in business strategy and operations
- Understanding Financial Statements
- The income statement (profit & loss): revenues, costs, and profitability
- The balance sheet: assets, liabilities, and equity
- The cash flow statement: cash inflows and outflows
- How financial statements are interconnected
- Budgeting and Financial Planning
- Purpose and types of budgets
- Components of an operational budget
- Forecasting techniques and variance analysis
- Capital vs. operating expenses
- Cost Concepts and Break-Even Analysis
- Types of costs: fixed, variable, direct, indirect
- Contribution margin and cost-volume-profit (CVP) analysis
- Break-even point and margin of safety
- Cost control and optimization strategies
- Financial Ratio Analysis
- Liquidity, profitability, efficiency, and solvency ratios
- Interpreting ratio results and benchmarking
- Using ratios to assess financial health and make decisions
- Managing Working Capital
- Components of working capital: cash, receivables, payables, inventory
- Strategies for managing liquidity and cash flow
- Credit policies and inventory control
- Investment Decisions and Capital Budgeting
- Time value of money concepts: NPV, IRR, and payback period
- Evaluating business investment opportunities
- Risk assessment in financial decision-making
- Business Financing and Sources of Capital
- Equity vs. debt financing
- Internal vs. external funding sources
- Understanding interest rates, loans, and credit terms
- Cost of capital and financial leverage
- Financial Governance and Compliance
- Corporate financial responsibilities and reporting standards
- Internal controls and audit basics
- Legal and ethical considerations in finance
- Applying Financial Knowledge in Business
- Real-world case studies and decision-making scenarios
- Building a financial mindset for strategic planning
- Communicating financial information to stakeholders