A Simple and Useful Guide on Financial Analysis for Non-Finance Executives

1. A Simple and Useful Guide on Financial Analysis for Non-Finance Executives Finance is the life blood of any business which keeps it going. However, the nuances of finance are most of the time confined to the finance department. Experts say that, for a successful operation of a company, it is important for even the non- finance departments and executives to have an idea of what goes behind the financial scenes as it helps them in understanding the business better and operate accordingly so that they can contribute their bit to the financial stability of the company. More and more companies in Singapore are realising the need for relevant training for their staff and conducting training courses which benefits both their staff and the company. Just like companies invest in customer service training, it is important to enlighten the non-finance managers and conduct a small session of training in finance for non-finance managers. Here’s a guide for non-finance managers to evaluate and analyse the financial statement of your company: The reporting system should follow certain criteria such as: - The budgets must consist of balance sheets, cash flows, and income and expenditure. The ratios can be used for analysing the financial condition of the company. The budget and management account must be compared and the reason for variance should be figured out followed by required actions. - - The next consideration is to compare like things. Additionally, it is imperative to mention the key features that help in analysing and evaluating the performance of your business. These measures are generally defined in ratios. For determining the success of the company, you can’t analyse the profits alone. A better approach can be to associate the profits with the amount invested in the assets. This approach will help in figuring out the ‘return on assets’. The better terminology for it is ‘Return on capital employed’, and it is often mentioned in percentages. With financial analysis, you can get insight on the following areas of your business: - - - - Figuring out problem areas of current business financial Performance evaluation and utilisation of funds over the years Asking relevant questions about budget planning and expenses incurred Result of financial business decisions taken in the past You need to extract the relevant figures from the financial statements and present them in a format which makes the process of analysing and comparing easier.

2. Additionally, you need to apply the right financial techniques for the assessment of factors that impact your figures. The information provided above will give an insight as to why you should enrol your employees in finance for non-finance managerscourse. Explore the web for more information and suggestions on choosing the right customer service trainingcourse for your staff.