Finance for Non-Financial Managers

INTERNATIONAL TRAINING ON FINANCE FOR NON-FINANCIAL MANAGERS

COURSE BACKGROUND

In today’s business landscape, financial performance is a collective responsibility, extending beyond the finance department to every functional area. Managers across marketing, operations, human resources, and other departments make daily decisions that directly impact their organization’s profitability, cash flow, and overall financial health. However, many of these professionals lack formal financial training, leading to difficulties in interpreting financial reports, understanding budgets, or accurately assessing the financial implications of their operational choices.

This gap in financial literacy can hinder effective decision-making, limit cross-functional collaboration, and ultimately constrain organizational growth. Empowering non-financial managers with essential financial acumen is crucial for fostering a culture of financial responsibility, optimizing resource allocation, and ensuring that departmental goals align seamlessly with the broader financial objectives of the company, a critical capability for businesses striving for success in dynamic markets like Kenya.

ECAS Institute offers this “Finance for Non-Financial Managers” course to bridge this crucial knowledge gap. This program is designed to demystify financial concepts, enable confident engagement with financial data, and equip managers with the practical skills to make financially sound decisions that drive departmental and organizational success.

COURSE OBJECTIVES OF THE TRAINING

Upon successful completion of this course, participants will be able to:

1. Demystify fundamental financial terminology and concepts, enabling confident participation in financial discussions.
2. Understand the purpose and interrelationships of the three core financial statements (Income Statement, Balance Sheet, and Cash Flow Statement).
3. Interpret key financial data and ratios to assess organizational performance and identify areas for improvement.
4. Develop and manage departmental budgets effectively, aligning spending with strategic objectives.
5. Understand cost structures and cost behavior, applying this knowledge to optimize operational efficiency.
6. Analyze the financial implications of business decisions (e.g., project investments, pricing, resource allocation).
7. Communicate more effectively with finance professionals and contribute meaningfully to financial planning and strategy.
8. Identify basic financial risks within their areas of responsibility and contribute to mitigation efforts.

WHAT YOU WILL LEARN

This course will transform your understanding of financial information, turning intimidating numbers into actionable insights. You will learn to:

• Read and interpret a company’s Income Statement (Profit & Loss) to understand profitability drivers.
• Analyze a Balance Sheet to assess financial position, assets, liabilities, and equity.
• Understand the Cash Flow Statement to track how money moves in and out of the business, identifying liquidity.
• Calculate and interpret essential financial ratios (e.g., profitability, liquidity, efficiency) to gauge performance and health.
• Construct and manage a departmental budget, track variances, and take corrective actions.
• Distinguish between different types of costs (fixed, variable, direct, indirect) and apply cost control techniques.
• Perform basic cost-benefit analyses for project proposals and operational changes.
• Understand the concept of working capital and its management in day-to-day operations.
• Appreciate the time value of money and its relevance in investment decisions.
• Evaluate the financial impact of operational and strategic decisions within your area.
• Engage confidently in financial conversations with accountants, senior management, and other stakeholders.

DURATION AND PROGRAM

This is a structured training course designed to be highly practical and accessible, regardless of your prior financial background. The program will feature interactive lectures, clear explanations of financial jargon, hands-on exercises using simplified financial statements and scenarios, practical budgeting workshops, and case studies (including examples from various industries in Kenya and globally). Participants will engage in group activities to apply concepts to real-world business situations, fostering confidence and practical skills. The specific duration of the course will be communicated upon registration, tailored to ensure comprehensive coverage and the development of actionable financial acumen.

TARGET PARTICIPANTS

This course is essential for any manager or professional whose role requires them to understand financial information, manage budgets, or contribute to decisions with financial implications. It will particularly benefit:

1. Department Heads and Team Leaders (e.g., in Marketing, Sales, Operations, HR, IT, Production).
2. Project Managers responsible for budget oversight and resource allocation.
3. Engineers and Technical Specialists who need to understand project costs and returns.
4. Entrepreneurs and Small Business Owners seeking better control over their finances.
5. Professionals aspiring to leadership roles that require financial literacy.
6. Anyone who regularly interacts with finance departments or financial reports.
7. Non-profit Managers who need to manage grants and operational budgets effectively.

TRAINING MODULES

The course is structured into comprehensive modules, building financial literacy progressively

No	Module	Details
1.	Introduction to Business Finance and Key Concepts	This module introduces the fundamental concepts of business finance, defines essential financial terminology, and explains why financial literacy is crucial for all managers. Key Topics: The language of finance: Demystifying jargon. Purpose of financial management in an organization. Key financial goals: Profitability, liquidity, efficiency. Basic financial terms: Revenue, Expense, Profit, Asset, Liability, Equity.
2.	Understanding the Income Statement (Profit & Loss)	This module provides a clear breakdown of the Income Statement, explaining its components and how to interpret it to assess a company’s profitability over a period. Key Topics: Revenue, Cost of Goods Sold (COGS), Gross Profit. Operating Expenses (e.g., Salaries, Rent, Utilities, Depreciation). Operating Profit (EBIT). Interest, Taxes, and Net Profit (The Bottom Line). Accrual vs. Cash basis accounting (simplified).
3.	Deciphering the Balance Sheet	This module explains the Balance Sheet, a snapshot of a company’s financial position at a specific point in time, detailing what a company owns, owes, and the owners’ stake. Key Topics: The accounting equation: Assets = Liabilities + Equity. Current vs. Non-Current Assets (Cash, Accounts Receivable, Inventory, Property, Plant & Equipment). Current vs. Non-Current Liabilities (Accounts Payable, Loans, Accruals). Shareholders’ Equity (Share Capital, Retained Earnings).
4.	Analyzing the Cash Flow Statement	This module focuses on the Cash Flow Statement, which shows how cash is generated and used by a company across its operating, investing, and financing activities, providing insights into liquidity. Key Topics: Importance of cash flow vs. profit. Cash flow from Operating Activities. Cash flow from Investing Activities. Cash flow from Financing Activities. Understanding cash flow cycles.
5.	Budgeting and Cost Management for Managers	This module provides practical skills in developing, managing, and controlling budgets, enabling managers to effectively allocate resources and monitor departmental financial performance. Key Topics: Purpose and benefits of budgeting. Types of budgets (e.g., Operating, Capital, Cash). Budgeting process and setting targets. Cost classification (Fixed, Variable, Direct, Indirect). Variance analysis: Budget vs. Actual. Cost control strategies and cost reduction initiatives.
6.	Financial Analysis and Performance Ratios	This module introduces key financial ratios that can be used to quickly assess an organization’s performance, liquidity, solvency, and efficiency, enabling data-driven decision-making. Key Topics: Profitability ratios (e.g., Gross Profit Margin, Net Profit Margin). Liquidity ratios (e.g., Current Ratio, Quick Ratio). Efficiency ratios (e.g., Inventory Turnover, Accounts Receivable Turnover). Solvency/Leverage ratios (e.g., Debt-to-Equity). Using ratios for performance monitoring and benchmarking.
7.	Financial Decision-Making and Value Creation	This module ties together the learned concepts, focusing on how managers can use financial insights to make better operational and strategic decisions that contribute to organizational value. Key Topics: Understanding the financial impact of departmental decisions. Introduction to Return on Investment (ROI) and simple payback period. Cost-Benefit Analysis for projects and initiatives. Working Capital Management basics (cash, inventory, receivables, payables). Overview of financial risks and their management from a non-financial perspective.

TRAINING STYLE

The modules will be taught through PowerPoint presentations, and lectures and will include a case study/field visit, breakout sessions, case studies and other interactive discussion components.

The course will also include a few guest speakers, both in person and via Zoom and other online learning platforms for overseas speakers. This provides useful real-world insights alongside the more theoretical aspects of the course.

The conference faculty shall consist of experienced decision makers, as well as practitioners and representatives from established educational and research institutions active around climate change, engineering and international development. Throughout the course, theoretical presentation of concepts will be moderated and more group discussions and plenary engagements will be optimized. PowerPoint presentations will be made by facilitators and resource persons, to highlight key concepts before embarking on group work.

GENERAL NOTES

• Training manuals and additional reference materials are provided to the participants.
• Upon successful completion of this course, participants will be issued with a certificate.
• We can also do this as a tailor-made course to meet organization-wide needs. Contact us to find out more: info@ecasiafrica.org.
• Payment should be sent to our bank account before the start of training and proof of payment sent to: info@ecasiafrica.org.

ABOUT ECAS INSTITUTE

The ECAS Institute designs and delivers independent and targeted training, research, and consulting services. Our work focusses on climate change and resilience building, carbon markets, renewable energy, nature-based solution, biodiversity conservation, agriculture and food systems, We are located in Nairobi Kenya and work across the African region. We have implemented training and research assignments in Kenya, Tanzania, Uganda, South Sudan, Somalia, Malawi, Rwanda, Congo, and South Africa. Globally, we have supported our partners from the UK, Denmark, Italy, Sweden, Germany, and USA.