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Principles of Finance for Consulting Engineers

Overview

This course offers a no–nonsense approach to the financial management of your business. Financial management sits at the core of every successful business, and to ignore this is to ignore the financial well being of your enterprise.

This 2 day course underlines the critical importance of managing your business from a financial point of view. During the course of the 2 days, the following issues are handled in a simple and easy way, by eliminating and clarifying the jargon that so often clouds the understanding of financial statements

Course Outline

1.   THE BUSINESS ENVIRONMENT IN SOUTH AFRICA 

  • The demands of corporate governance.
  • Types of business entities.
  • Accounting rules.

2.  THE ACCOUNTING EQUATION AND THE DOUBLE 
      ENTRY SYSTEM OF ACCOUNTING 

  • The importance of accounting
  • Definitions
  • The accounting equation
  • The system of double-entry accounting
  • Users of financial information.

3.   THE ACCOUNTING PROCESS 

4.   TRADING ENTITY ACCOUNTS  

  • The meaning of accounting profit.
  • How to prepare a basic income statement.

5.   COMPANY ACCOUNTS 

  • Does a balance sheet reflect the true value of a business?
  • Sources of capital.

6.   CASH FLOW MANAGEMENT

  • The importance of cash flow management
  • The organisation of a statement of cashflows.
  • Cash versus Profit?

7.   FINANCIAL ANALYSIS

  • The objectives of ratio analysis
  • The Du Pont system of sensitivity analysis

8.   QUALITY OF EARNINGS ANALYSIS 

  • The definition of quality of earnings. 
  • The factors affecting quality of earnings

9.   BUDGETING

10.  WORKING CAPITAL MANAGEMENT 

  • Definition of working capital.
  • Management of the components of working capital.

11. VALUE-ADDED TAX. (For information)

12. CAPITAL BUDGETING 

  • Present Value
  • Discounting future values 
  • Calculating Net Present Value

13. COMPANY VALUATION METHODS 

  • Price earnings (P/E) and Market to Book (M/B) Ratios
  • The Asset Value Approach
  • The Discounted Cash Flow Method

14. FINANCIAL MODELLING 

  • Introduction
  • Projection of financial statements
  • Advantages of Modeling  
  • Disadvantages of modeling

·         Self-assessment

 

Learning Outcomes

Delegates will learn how to:

 

  • Identifying and assessing the risk and reward associated in business. What return should you expect from your investment, and how are you shaping up.
  • How much is your company worth. A simple way to determine the value of your investment in terms of cash produced, as an ongoing enterprise.
  • How is the data represented by the transactions in your business processed to provide you with meaningful information? Basic principles of your information system in an easy and practical way
  • Project evaluation. How do you determine the profitability of a project over a number of years?
  • How to approach  costing  and the different ways to look at project as well as enterprise costing
  • What information does the income statement reflect? How to read this statement and interpret it. What Information does the Balance Sheet provide? 

Who should attend?

•    All managers,
•   
Business owners
•   
Engineers, and
•    Project managers

Type: Course
CESA Validation Num: CESA-883-07/2019
CPD Points: 2
Coordinator: Blessings Banda
Provider: Technology Financial Services
Presenter: Alex Nortje
Fee: R 4 596.84 excl. VAT
R 5 240.40 incl. VAT
R500.00 discount incl. VAT for CESA members
Schedules: