Finance for Non-Financial Managers

Introduction

• How to make wiser business decisions
• Don’t fear the numbers

1. Finance and Accounting Basics

• The purpose of finance
• Entrepreneurs, investors, and facilitators
• What is accounting?

2. Most Common Financial Reports

• Overview of the financial statements
• What to look for in a balance sheet
• Overview of the income statement
• Interpreting the statement of cash flows

3. Techniques for Using Financial Reports

• What is financial ratio analysis?
• Calculating return on equity
• A deeper look at the DuPont framework’s three components
• The DuPont framework: Walmart and Target
• What is the next step in the analysis?

4. Short-Term Financial Management

• Managing cash through the operating cycle
• Strategies for cash management
• Managing receivables and inventory

5. Costing a Product or Service

• Considering costs: Fixed, variable, and contribution margin
• How to calculate your break-even point

6. Creating a Budget

• Drafting a budget
• Review of the budgeting steps

7. Income Tax Basics

• Understanding income taxes
• Tax brackets, average tax rate, and marginal tax rate
• Tax deductions and tax credits

Conclusion

• Next steps