Proof that Finance for Non-Finance Professional is exactly what you are looking for

In today’s world, it is important to be a jack of all trades. A Businessman is expected to have a good knowledge of social media, Finance and many more. The Finance for Non- Finance Professionals training provides you with just the right knowledge that you require. Finance for Non-Finance Professionals will help you understand Financial terminologies and business measurements. You will be able to judge any company’s performance by using financial ratios and compare them to the industry norms. Thus, it helps in analysing business opportunities and business decisions. It will teach you to manage profitably, improve decision-making and presentation of proposals by utilizing financial analysis, tools and techniques and calculate profit and loss.

What is finance?

Finance is a broad term that describes two related activities: the study of how money is managed and the actual process of acquiring the required funds. Finance is an essential building block of business renewal and growth. Irrespective of the kind of business requires finance to transform an idea into action as they pursue a growth journey. It encompasses the oversight, creation and study of money, banking, credit, investments, assets and liabilities that make up financial systems.

Benefits of finance

Studying finance will help you in several ways. Here they are listed below:

• Analyze financial statements
• Understand costs and methods and find ways to reduce them
• Understand the financial statements and their key elements
• Learn to take decisions on whether the price of the products or services or both is worth it or not
• Communicate more effectively with key sources of financing such as bankers, lenders, and investors of their organisations
• Utilizing the core terms, concepts, and techniques of finance and accounting for decision making
• Understand how your business decisions can impact your company’s financial statements
• Identify any downfall in financial conditions
• Participate in discussions on current financial and economic issues
• Learn budgeting and its advantages
• Analyse the difference between the actual and budgeted results. Understand what caused it
• Understand the cost of business operations and learn how to manage them
• Learn the most important principles of budgeting
• Learn to prepare management information

Importance of Finance

For non-financial professionals, learning the financial concepts will greatly help in improving their skills and abilities to manage the financial aspects of a business entity. Taking the finance for non-finance training course will help them understand the various financial reports for making important business decisions. Several educational institutes, universities, and training institutes are there to help non-finance executives to enrol for various types of finance-related courses being offered by them on finance and accounting subjects.

Majority of training courses on finance lay emphasis on understanding the financial statements and analysis. The other areas of learning involve knowing about financial tools for evaluating operating and strategic investments.

The financial KPIs are the key indicators for top management, and executives with financial knowledge would be able to develop KPIs, which help in the growth of the business of their organisations across the globe. The key areas of financial topics that non-finance executives should learn or have a grip on include as follows:

• Analysis of Financial Statement
• Cost Accounting and Management Accounting
• Project Evaluation
• Financing, Leverage, and Options
• Preparation and Presentation of Financial Forecasts
• Financial Tools for Evaluating, Operating, and Strategic Investments
• Budgeting Processes and Audit

Also, this course is important because:

• Every decision in an organization revolves around Finance
• If you are an entrepreneur, it’s crucial that you have knowledge of Financial Matters to manage your business effectively
• If you are head of a department like Production / Purchases / Sales, etc and if you aspire to grow in your hierarchy, financial knowledge is a must

Who should attend the Finance for Non-Finance Professionals?

• Managers from any background apart from those with a Finance background
• Entrepreneurs and consultants
• Non-financial specialists seeking information on finance and accounting

What do you mean by the financial statement?

Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. This kind of information is important for shareholders, stakeholders, vendors, customers, government and company management itself.

There are mainly three types of Financial Statements

• Income Statement

• Balance Sheet

• Cash Flow statement

Income Statement: This is a measurement of a company’s performance in terms of finance. It reflects and predicts its profitability over a specific period. Income Statement also called Profit and Loss, Statement of Earnings or Statement of Operations.

Balance Sheet: This comprises of the companies or entity’s assets and liabilities – it’s financial position at the end of the day at a specific date. It is also known as a Statement of Financial Position.

Cash Flow Statement: It provides information about cash receipts and payments of a company within a specific duration. It provides information on cash flow on the basis of its operation, investment, and financing activities.

Finance terms everyone should know

It is important to understand the financial implications of your decisions and clearly communicate those decisions to key stakeholders. But first, you need to grasp and understand the terminologies. We have selected 14 such terms that will help aid your communication:

1. Amortization: This is a method of spreading an intangible asset’s cost over the course of its useful life. Intangible assets include non-physical assets that are often essential to a company. These assets may include trademarks, patents, copyrights, or franchise agreements.

2. Assets: Items you own that can provide benefit with your company in the future like cash, inventory, real estate, office equipment’s, or accounts receivable which are payments due to a company by its customers are called assets. There are different types of asset which include:

• Current Assets: Assets that be converted into cash in a span of a year
• Fixed Assets: Tangible items that s company uses to generate revenue over the long-term. These can’t be turned into cash immediately.

3. Asset Allocation: How you choose to spread your money across different investment types is known as asset allocation or asset classes. These include:

• Bonds: By purchasing a bond, typically from the government or a corporation, you’re essentially lending them money. Here, you receive periodic interest payments and get back the loaned amount at the time of the bond’s maturity.
• Stocks: A stock is a share of ownership in a public or private company with this you become a shareholder and can receive the company’s profits—if and when they are distributed.

4. Capital Gain: Increase in the value of an asset or investment above the price you initially paid for it. If you sell the asset for less than the original purchase price, that would be considered a capital loss.

5. Capital Market: A place where buyers and sellers engage in the trade of financial assets, including stocks and bonds.

6. Compound Interest: In simple words, it means “interest on interest.” Rather, when you’re investing or saving, compound interest is earned on the amount you deposited, plus any interest you’ve accumulated over time. While it can grow your savings, it can also increase your debt on the initial amount you were loaned.

7. Depreciation: Depreciation represents the decrease in an asset’s value. It’s a term commonly used in accounting and shows how much of an asset’s value a business has used over a period of time.

8. EBITDA: An acronym standing for Earnings Before Interest, Taxes, Depreciation, and Amortization. EBITDA is a commonly used measure of a company’s ability to generate cash flow.

9. Liabilities: this is the opposite of assets. Liabilities are what you owe other parties, such as bank debt, wages, and money due to suppliers, also known as accounts payable. There are two types of liabilities that include:

• Current Liabilities: Also known as short-term liabilities, which are due in the following year
• Long-Term Liabilities: These are financial obligations that can be paid off over a longer period of time.

10. Liquidity: Liquidity describes how quickly your assets can be converted into cash. While the most liquid asset is cash, the least liquid assets are items like real estate or land, because they can take weeks or months to sell.

11. Net Worth: You can calculate net worth by subtracting what you own that is your assets, with what you owe which is your liabilities. The amount that remains, is the overall state of your financial health.

12. Profit Margin: The measure of profitability that’s calculated by dividing the net income by revenue or the net profit by sales. Companies often analyze two types of profit margins:

• Gross Profit Margin: Which applies to a specific product or line item
• Net Profit Margin: Which represents the profitability of the entire company

13. Valuation: Valuation is the process of determining the current worth of an asset, company, or liability. There are a variety of ways you can evaluate a business, but regularly repeating the process would be more helpful, because you’re then ready if ever a situation arises where you must merge or sell your company or are trying to seek funding from external investors.

14. Working Capital: Also known as net working capital, this is the difference between a company’s current assets and current liabilities. Working capital—the money available for daily operations—can help determine an organization’s operational efficiency and short-term financial health.

Conclusion

For non-finance professionals, especially businessmen, the Finance for the non-Finance certification training course is important because will provide a generic view and understanding of the financial situation and may not have to depend on others to understand and plan the future of the company.

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