B0502
Bus.Ops
Finance; The P&L and balance sheet, Management Principles and how to use them to your advantage
All
Key topics covered:
Understanding and interpreting financial information is a key skill for your Management Team. Being able to recognise the relationship and impacts that each type of report has on each other ensures you are in a strong financial position.
In this course we cover:
- What is a balance sheet, profit and loss statement and cashflow statement
- The relationship between each statement and how they interact.
- Key Profit and Loss Items in a civil contracting company (sales, wages, project costs)
- Key revenue and expense items in a civil contracting company (sales, labour, depreciation, work in progress, repairs and maintenance, costs to complete a project)
- Key assets and liabilities in a civil contracting company (Work in Progress, debtors, fixed assets, creditors, employee entitlements, taxes and retained earnings)
- How each report measures performance and how it can be used for benchmarking
- What are the key cashflows of a civil contracting company (i.e. capex, wages, sub-contractors, taxes, debtor receipts)
- Understanding cashflow and debtor control
- Progress billing of projects and the timing of cashflows
- Key Financial Ratios including Working Capital, Gearing, Asset Utilisation, Asset Turnover, Labour Utilisation, WIP Turnover, Debtor Turnover
- How to interpret key ratios and improve your business performance
- Benchmark Ratios for a civil industry
Learning Outcomes:
Your team will have the knowledge and skills needed to understand the key elements of financial management. Using a variety of methods, including benchmarking and ration analysis, you will develop a strong understanding of the drivers of financial performance.
Who Should Attend
Prerequisites
Duration
Project Managers, Contract Managers, Senior Managers, Leadership Teams, Executives, Business Owners, any department lead with a responsibility to financial performance.
None
4 Hours