Financials for Non Financial

Overview:

This program aims to enable microfinance professionals, who are not specialized in financial affairs, to understand the basic principles of financial and managerial accounting. It focuses on equipping participants with the knowledge and skills necessary to read and analyze financial reports and handle basic financial concepts, contributing to improved decision-making efficiency and enhanced institutional performance.

Main Topics:

• Basics of financial accounting starting from the basic accounting equation and knowledge of the company’s accounting cycle.
• Identify the principles of recognition and measurement of financial statement items and the most important assumptions on which they are based (accrual basis and cash basis).
• Prepare the four financial statements (statement of financial position, income, changes in equity and cash flows).
• Analyze financial statements using different methods (vertical analysis, horizontal analysis and financial ratio analysis).
• Identify the criteria for recognition and measurement of accounts receivable and methods for taking provisions for doubtful accounts.
• Understand and distinguish the types of goods, their cost components and methods of assigning them (first in, first out, weighted average and in-kind discrimination) and how to evaluate them according to international accounting and financial reporting standards.
• Identify warehouse systems (periodic inventory system and perpetual inventory system and the most important differences between them.
• Identify the bases for recognizing revenues (service revenues and revenues from the sale of goods).
• Explain the concept, objectives, types of budgets and methods of preparing them. Learn how to use accounting information to make the most important high-level and administrative decisions.
• Understand and calculate the break-even point analysis.
• Understand and know how to calculate the feasibility of projects (net present value, internal rate of return, payback period and discounted payback period) (NPV, IRR Payback Period and Discounted Payback Period)
• Learn about the concepts of the present value of money (Time Value of Money Concepts)
• Cases Study and examples

Objectives:

• Understand the difference between accounting and financial management, and clarify the role of financial management as a key function in companies.
• Learn financial terms used to describe company financial performance, such as profit and profit margin.
• Understand and identify the four key financial statements: balance sheet, income statement, cash flow statement, and statement of changes in equity.
• Learn how to evaluate the financial position of a company and its departments using financial data and reports.
• Prepare operating budgets and align them with the strategic objectives of the organization.
• Apply capital budgeting techniques and cost-volume-profit analysis to enhance decision-making.

Target Audience:

• Accountants, financial managers, and financial analysts.
• Internal and external auditors.
• Employees in departments whose work intersects with the accounting department (e.g., warehouse, procurement, and sales staff).