SYNOPSIS
Synopsis
COURSE DESCRIPTION AND OVERVIEW
This course, Finance and Accounting for Engineers, is designed to advance the professional engineer within his technical field by introducing or re-introducing languages from the accounting and finance professions. The professional engineer will be better suited in a corporate or entrepreneurial environment if he/she can grasp the bases and principles of accounting practice and financial management and thus improve their overall career activities. Simple and basic topics are introduced to aid the professional practitioner in dealing with non-engineering professionals such as financial managers and accountants. The course participant will also learn the concepts and the skills necessary to assess financial performance; concept of costs and valuations; budgeting and decision-making techniques.
BENEFITS OF ATTENDING
- Better understanding of finance and accounting terms relative to the practice of engineering, engineering management, project management and manufacturing management.
- Greater confidence in interactions with finance and accounting functions
- Essential skills for the development of viable and effective departmental budgets, and in presenting an effective financial justification on proposed projects.
- Enhanced comprehension of financial reports and financial analysis.
- Enhanced knowledge of stakeholders’ interest in financial reviews. Professional engineers in their various levels and positions are required to deal with their internal support personnel, clients, lenders, partners, investors and other professionals.
INTENDED AUDIENCE
The course is suitable for all engineers, technologists and other non-finance managers who want to know more about accounting and finance
Workshop outline
Day 1
MODULE ONE: INTRODUCTION TO ACCOUNTING AND FINANCE
- Bookkeeping and accounting
- Users of accounting information
- Finance and accounting functions
- Corporate finance and business organisations
MODULE TWO: BASIS AND PRINCIPLES OF ACCOUNTING PRACTICE
- Cash versus accrual accounting
- Double entry bookkeeping
- Other underlying principles, concepts and assumption
- Accounting cycle
MODULE THREE: ACCOUNTING EQUATION AND COMPONENTS OF FINANCIAL STATEMENTS
- Account types/elements of financial statement
- Basic accounting equation
- The balance sheet
- Profit and loss account
- Cash flow statement
- Case – Engineering perspective
MODULE FOUR: ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS
- Interest groups and types of analysis
- profitability ratios
- Liquidity ratios
- Activity ratios
- Debt ratios
- Market ratios
- Ratio summary – DuPont system of analysis
- Limitations in the use of ratio analysis
MODULE FIVE: COST CONCEPTS AND CVP ANALYSIS
- Nature and behaviour of costs
- Cost estimation techniques – cost function
- Contribution and break-even analysis
- Break-even graph and margin of safety
- Target profit analysis
Assumptions and effects of changes in costs
MODULE SIX: PLANNING, BUDGETING AND CONTROL
- Standard costing and variance analysis
- Relevant costing for short-term decisions
- Sensitivity analysis
- Budgeting and control
DAY 2
MODULE SEVEN: INVENTORY SYSTEMS AND VALUATIONS
- FIFO and weighted average valuations
- Perpetual and periodic inventory systems
- Overhead treatment and valuation of production output
MODULE EIGHT: TIME VALUE OF MONEY AND COST OF CAPITAL
- Time value
- Cash flow patterns
- Future value (compounding)
- Present value (discounting)
- Capital budgeting techniques
- Cost of capital and financial leverage
- Financial markets
MODULE NINE: WORKING CAPITAL MANAGEMENT
- The cash conversion cycle (CCC)
- Accounts receivable management
- Inventory management
- The cost of cash and cash budget