Financial Management Training Courses- Everything You Need To Know

Most people think that financial management is all about learning how to manage finances better. While this may be true, it is a very broad term that doesn’t exactly portray what financial management really is. In essence, financial management is all about making informed decisions. In a business entity, money comes in and goes out through many different sources. Most of the dealings are done on a credit basis. Customers purchase large amounts of goods on credit, payment for which is received later on. This is the primary income stream for most business entities.

On the other hand, businesses purchase raw materials from their suppliers on credit. All of this can be pretty confusing for a person who has no inside knowledge of the business. As a finance manager, it is your job to make sure that the business financials look good. All decisions made by a business entity must be backed up by reliable financial information. As a result, you may be consulted before any major decision is made by the business entity.

However, the field of finance is massive. There are always new things to learn and different strategies to implement. Finance managers are usually experts in accounting, but they always need to brush up their knowledge. In the UK, many companies offer different types of training courses that teach new things. For instance, management training courses for secretarial skills are designed to improve the performance of secretaries in a business entity.

Similarly, financial management training courses are created to help managers brush up their knowledge and learn about any new advancements in the field of finance. If you are thinking of taking a financial management course, here are a few things that you will be taught:

A Complete Analysis of Financial Statements

If you have never studied finance before or are just looking to brush up your concepts, the first and foremost thing that you need to look at financial statements. Financial statements consist of the statement of financial position, the statement of comprehensive income, the statement of changes in equity as well as the cash flow statements. Each statement is vital for investors in order to determine the financial position of a business entity. As a finance manager, you will be asked to analyse many financial statements and determine whether the company is in a good position or not.

For instance, the statement of financial position highlights the assets and liabilities of an entity. The statement of comprehensive income details information about the company’s performance for the current year, with the net profits listed at the end of the statement. Training courses are usually taught by financial experts with years of knowledge. They provide information on how to analyse financial statements, as well as key indicators that determine a company’s financial health.

How to Prepare Financial Statements

In the United Kingdom, all financial statements must be prepared using the International Accounting Standards and the International Financial Reporting Standards as a reference. These statements are submitted to the Securities and Exchange Commission. As a result, it is important for financial managers to know how to prepare statements that comply with IFRS.

If you are new to finance or haven’t prepared financial statements in a long time, taking a training course is a great way to learn your concepts all over again. These training courses provide complete knowledge about the requirements set forth by the IAS and IFRS. You will also learn many tips and tricks on how to prepare financial statements quickly and effectively.

Fraud Prevention

One of the most important jobs of a financial manager is to prevent fraud within the company. Employees that have access to the company’s accounts may try to misappropriate assets or misrepresent information. As a finance manager, you will have to sign the accounts before they are sent for approval. That means you will be directly responsible in case the fraud is not detected in time.

Financial training courses teach effective tips and techniques on how to detect fraud, as well as create safeguards in order to prevent other employees from committing financial fraud. Financial managers need to be at the top of their game at all times. Learning a thing or two about fraud prevention can only be beneficial for you in the long run.

Financial Risk Management

Risk management is a very important field in finance. As the term suggests, risk management is all about the percentage of risk that a business can afford to take on an investment. Whenever a business is about to make an investment, the financial manager must assess the risk involved. If the risk is high, the business must rethink its next move. Financial risk management is a very detailed field and requires a lot of study and knowledge.

In training courses, financial risk management is usually taught in bits and pieces. Because of the fact that it is such an expansive subject, risk management cannot be covered in detail. However, if you already know a thing or two about risk management and have a passion to learn more, the training course may prove to be highly beneficial.

Internal Auditing

Auditing is all about keeping a check on financial and operational activities in a business. Most financial training courses teach the basics of internal auditing, making participants aware of the different controls and auditing procedures that must be carried out in the business entity. This helps to improve business performance and prevents fraud in the workplace.

Financial Modelling

Finance managers are often asked to create financial models in order to highlight real world financial scenarios in an abstract representation. Financial models are often the subject of executive meetings, where they are discussed by the board of directors. The company often makes major decisions based on these financial models. Training courses provide guidelines on how to create effective financial models that take all real world factors into consideration. This leads to a better, more elaborate model.

Categorized as Finance