Course Overview

Financial planning is the process of raising funds and allocating these funds on the basis of a business strategy. The starting point of the financial plan is therefore organisation’s Mission/ Vision Statements. It is almost impossible for an organisation to be financially viable without preparing a proper financial plan. This includes financial feasibility studies before the operations and preparing budgets and forward plans during the operations. Not all businesses achieve success and one of the reasons is the lack of financial planning.

Financial reports give a deep insight into the financial health of the company. Business owners, directors, and the top management must have the ability to go behind the figures in the financial reports so as to understand the current financial health and plan for the future.

It is, therefore, crucial to understand the financial statements of the company and differentiate between various statements produced in an annual report and grasp the flow of information. Financial Planning and Analysis teams play an important role by preparing budgets and forecasts supporting major decisions taken by the Boards and CEOs. In this regard, various types of budgets and forward plans will also be covered.

This ZOE course will empower the Directors, both executive and non-executive, CEOs, and other senior executives of the organisation to understand the financial statements, measure assets and liabilities of the company, cost behaviour, and variance analysis for better analysis and decision-making. The most critical part of a financial plan is to understand the judicial utilisation of the funds.

The course will also provide the necessary understanding of different sources of funds and where to deploy these funds in various departments. This includes Capital Investments appraisal, understanding various components of Working Capital, and advantages of having an efficient Enterprise Resource Planning system.

Course Objectives

The objectives of this Financial Planning and Analysis (FP&A) Certification Course are to ensure that the participants:

• Appreciate the importance of effective financial planning and its impact on profitability
• Understand Various sources of finance with their utilisation, based on the cost of capital
• Take sound investment decisions based on proper appraisal
• Obtain an overview of the financial statements and management reports to evaluate the company’s performance
• Understand the concepts of ratio/ horizontal/ vertical analyses
• Prepare competitor analysis, market trends, and related explanations for top-level discussions
• Understand cost behaviour and its effect on financial planning
• Provide detailed analysis and observations on the results of individual business units
• Understand various types of budgets and use the one most suited to the organization
• Use financial modeling to forecast the profitability and cash flows with sensible assumptions
• Understand the different components of working capital and reduce the operating cycle
• Get equipped to manage and control budgets and forward plans
• Explore the benefits of having an efficient E.R.P. system integrating financial information with other business units
• Understand the best practice of financial planning and management

Training Methodology

This collaborative Financial Planning and Analysis (FP&A) Certification Course will comprise the following training methods:

• Lectures
• Seminars & Presentations
• Group Discussions
• Assignments
• Case Studies & Functional Exercises

Zoe Talent Solutions follows the ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

Companies who nominate their employees to participate in this Financial Planning and Analysis (FP&A) Certification Course, can benefit the organisation in the following ways:

• Know the theory and merits of a proper corporate financial planning process
• Align the planning process with the overall strategic plan of the organisation
• Perform proper investment appraisal to optimize return on investment
• Estimate fund requirements and understand the concept of cost of capital for additional fundraising
• Ensure a reasonable balance between inflows and outflows of funds to maintain a healthy liquidity position
• Evaluate financial statements and measure own performance in comparison with the market trend
• Understand various types of budget and see what suits the organisation most
• Understand components of the budget with clear differentiation between revenue and capital expenditure
• Allocate budget smartly based on each division’s requirements
• Recognise cost behaviour for better analysis and identify areas for cost cutting
• Assess working capital requirements and reduce the operating cycle
• Maintain a fine balance between inventory, debtors, and creditor levels

Personal Benefits

Upon completion of this Financial Planning and Analysis (FP&A) Certification Course, individuals attending the course will be able to:

• Grasp key accounting concepts and apply the same for financial planning purposes
• Evaluate the capital structure, understand equity and debt capital, and calculate the cost of capital
• Conduct investment appraisal and prepare sensitivity analysis
• Calculate ROI and net cash flow for capital projects
• Build an Integrated Financial Model for budget preparation including cash flow forecasts
• Gain a thorough understanding of cost behaviour and learn to prepare variance analyses
• Differentiate between capital and revenue expenditure and plan accordingly
• Understand all components of working capital and how to optimize them
• Liaise with senior management to prepare the business’s financial and strategic plans with proper assumptions
• Evaluate financial report and understand the flow of information within the statements
• Prepare ratio analyses and report to senior management
• Create opportunities for personal development and increased financial awareness

Who Should Attend?

• Chairmen
• Members of the board of directors
• C-suite Executives, CEOs, CFOs, and COOs
• Independent directors
• External and internal auditors
• Members of the audit committees of the board
• Senior executives, Members of management committees
• Professionals associated with the finance function
• Shareholders and business owners eager to learn the fundamentals of financial planning

Course Outline

MODULE 1: INTRODUCTION TO CORPORATE FINANCE

• Overall Strategic Plan
• Mission / Vision Statement
• Majority Shareholders & Management
• Minority Shareholders
• Other Business Partners

MODULE 2: SOURCES OF FINANCE

• Equity and Debt Financing
• Gearing ratios
• Cost of Capital
• Weighted Average Cost of Capital
• Decisions regarding Dividend Payments

MODULE 3: CAPITAL EXPENDITURE

• Capital Investment Appraisal
• Return on Investment
• Payback Period
• Net Present Value
• Internal Rate of Return
• Lease or Buy Decisions
• Tax Implications thereof

MODULE 4: WORKING CAPITAL CONTROL

• Inventory Control
• Accounts Receivable
• Accounts Payable
• Reconciliation of Sub-ledgers
• Other Current Assets & Current Liabilities
• Tax and Deferred Taxation

MODULE 5: ENTERPRISE RESOURCE PLANNING (ERP)

• Sales
• Bill of material
• Material Management
• Procurement
• Production
• Finance

MODULE 6: BUDGET PROCESS AND MANAGEMENT

• Preparation of Master Budget
• Fixed v/s Flexible Budgets
• Quarterly Reviews
• Forward Planning
• Budget/ Actual Comparison
• Zero Based Budgets

MODULE 7: COST ACCOUNTING

• Total Absorption Costing
• Marginal Costing
• Contribution Margin
• Break-even Analysis
• Sensitivity Analysis
• Variance Analysis
• Price Variance
• Quantity Variance
• Mix Variance

MODULE 8: FINANCIAL ACCOUNTING

• Accounting Conventions
• Accounting Policies
• Revenue Recognition
• Worldcom / Enron Scandals
• International Accounting Standards (IAS)
• International Financial Reporting Standards (IFRS)

MODULE 9: FINANCIAL REPORTING

• Components of Financial Reports
• Balance Sheet
• Profit & Loss Statement
• Statement of Cash Flow
• Statement of Changes in Equity
• Accompanying Notes to the Accounts
• Ratio Analysis
• Vertical Balance Sheet & P&L Statement
• Horizontal Balance Sheet & P&L Statement
• DuPont Model

MODULE 10: CASE STUDY

• Financial Statements of a Manufacturing Company