Spanish Version

 

 

#101 - Understanding Financial Information

 

Course Description:   Are you often puzzled by the financial reports in your organization?  Do you have difficulty understanding or interpreting cost information? Do you wish you could use financial information to manage your organization more effectively? If you have answered yes to any of these questions, then this course is for you.   Designed specifically for nonfinancial managers and employees, this seminar will provide you with a working knowledge of how to analyze and use financial information to make sound business decisions. It demystifies the concepts of accounting and finance so that you can readily apply these concepts on the job and in your life.

Financial concepts are explained in a plain and simple language from the user’s point of view.  The course is taught in two parts. 

  • Part 1 focuses on external financial reporting.  It covers the nature and purpose of the basic financial statements:  the balance sheet, the income statement, and the statement of cash flows and how they are used to report the financial results of the organization.  It also discusses the importance of high quality financial reporting and its impact on the capital markets as well as the Sarbanes-Oxley Act and its implications for the managers of publicly held corporations.
  • Part 2 discusses how to analyze financial information for decision-making purposes.  It explains how to calculate and interpret the common financial ratios used to evaluate organizational performance and discusses how to detect trends or unusual situations.   It also explains basic accounting concepts and how these influence the preparation of financial information.  Finally, we will discuss how to use and interpret financial information prepared for internal use.  

Pre-requisites:  This course is taught at a basic level.  No pre-requisites or advance preparation are required.

Who should attend: Non-financial managers and supervisors in manufacturing or service industries, professional employees (planners, engineers, buyers, analysts), accounting assistants, accounting clerks.

Course Objectives:  Upon completion of this seminar, you will be able to:

  • Describe the accounting cycle in an organization.
  • Identify the symptoms of an obsolete accounting system.
  • Explain the responsibilities of users in the preparation and use of financial information.
  • Identify accounts and where they are typically found in the financial statements.
  • Use and interpret a balance sheet and income statement for decision support.
  • Explain how different business transactions impact your financial statements.
  • Describe the different types of financial statements.
  • Discuss the major elements of an annual report. 
  • Explain the importance of high quality financial reporting.
  • Discuss the Sarbanes-Oxley Act and its impact on management and the accounting profession.
  • Explain the role of the auditor in providing high quality financial reporting.
  • Calculate and use financial ratios to analyze financial information.
  • Apply analytical techniques for the interpretation of financial information.
  • Apply the basic accounting concepts.
  • Discuss the difference between financial information prepared for internal and external use.
  • Use and interpret financial reports prepared for internal use.

 

Course Content:

Part 1

  • The accounting cycle
  • Symptoms of an obsolete accounting system
  • Balance sheet, income statement, and statement of cash flows
  • How business transactions affect the financial statements
  • How to read an annual report or certified financial statements
  • The auditor’s opinion
  • The importance of high-quality financial reporting
  • The Sarbanes-Oxley Act
  • Internal controls and its role in ensuring high-quality financial reporting

 

Part 2

  • Techniques for financial analysis
    • How to calculate and use key financial ratios
    • How to perform trend analysis
  • The basic accounting concepts and how these influence the preparation of financial information.
  • Internal financial statements and other financial reports
    • Responsibility centers
    • Income statement
    • Departmental spending
    • Variance analysis

Instructional method used:  Group-live

Recommended CPE: 14 credit hours total*

*Note:  This seminar is not registered with the National Association of theState Boards

 of Accountancy (NASBA) and does not provide CPE credits for Certified Public Accountants.