Month and year-end closings are the ultimate processes of finance where the efforts spent during the period materialize in accurate and timely reports. It is important that such valuable information needs to be developed at a cost that is justified by the benefits gained. Hence, organizations need to always identify inefficiencies in the closing process and apply continuous improvement. This course provides several tools for process analysis and improvements related to closing the books quickly and efficiently.

Course Methodology

This course focuses on exercises, case studies, and individual and group presentations based on the issues and challenges facing the participants.

Course Objectives

By the end of the course, participants will be able to:

• Describe the different types of closing and list the main activities in the closing cycle
• Utilize assessment tools to pinpoint the disconnect between finance and internal users
• List the steps needed to carry on process improvements in finance and identify the need for closing process redesign
• Practice using process maps to identify closing inefficiencies and present improvement recommendations
• Apply best practices and enhance the monthly closing procedures

Target Audience

Accountants, finance managers, financial controllers, management accountants, general ledger accountants, accounts receivable and accounts payable accountants, senior accountants and assistant accountants.

Target Competencies

• Process analysis
• Closing procedures
• Analytical skills
• Process mapping

Course Outline

Understanding Fast closing

• Importance and benefits of fast close
• Hard, soft and virtual close
• Elements of soft close
• Vision of 'finance and accounting' function
• Activities and purposes of finance and accounting

The finance function as an added value

• Usefulness of financial information
• Defining the finance function stakeholders
• Disconnect between finance and internal users
• Tools to identify needs assessment and report user satisfaction

Redesign of the finance function

• The paradigm shifts
• Top information deficiencies
• Tools to identify the need for a redesign
• Reasons for process redesign
• Three steps to carry on process improvement and finance function redesign
• Planning the fast-close process

Setting up a plan for a fast close

• Pre-close process and activities
• Implementing the plan and staying in control
• Finance process redesign tools and techniques
• Cost and cycle time charts
• Process maps and value analysis
• Identifying process bottlenecks
• Organizing fast close resources needed
• Shifting close activities
• Selecting Key Performance Indicators (KPIs)
• Continuous improvements in closing process

Applying best practices in the close process

• Enhancing the operating cycle
• Procurement and disbursement processes
• Accounts payable
• Travel and entertainment
• Inventory and cost
• Payroll process
• Costing and analysis
• Commissions and fees

Billing and collection process

• Accounts receivable and billing
• Collections and cash management

Administration and reporting process

• The general ledger
• Operational budgeting
• Fixed assets
• Financial reporting

Elements of the close reporting package

Financial Modeling & Forecasting Techniques Using Excel

Financial modeling is crucial for taking investment decisions that can have a huge financial impact on companies. By attending this course, you will be able to effectively prepare and build financial models to cater to different types of investments alternatives, understand and analyze time value of money, present value, future value and weighted average cost of capital (WACC) in addition to proper analysis of financial information.

Course Methodology

This course uses hands-on application of financial modeling in Excel, in addition to demonstrating theoretical core topics. The course also features real-life case studies and presentations by participants. 

Course Objectives

• By the end of the course, participants will be able to:
• Apply time value of money concepts
• Perform and interpret financial analysis
• Apply cost of capital calculation techniques
• Construct forecasted financial statement models and perform sensitivity analysis
• Use the free cash flow technique in determining the value of a project or a company
• Develop financial models using Excel different modeling techniques

Target Audience

Professionals in corporate finance, financial analysts, investment bankers, financial controllers, finance managers, professionals responsible for project valuation, project finance, portfolio managers, and professionals in the private investment industry.

Target Competencies

• Learn financial applications of Excel
• Perform capital budgeting analysis
• Understand and practice Present Value (PV), Net Present Value (NPV), Internal Rate of Return (IRR)
• Understand and calculate Weighted Average Cost of Capital (WACC)
• Perform financial modeling using Excel
• Review scenario analysis

Note

This is a hands-on training course using laptops, participants need to bring their own laptops equipped with a fully functioning version of MS Excel 2010/2013.

Course Outline

Financial calculations: Applications

• Time value of money:
• Present Value and Net Present Value
• Internal Rate of Return and Multiple IRR (MIRR)
• Using XNPV and XIRR
• Amortization of loan schedule
• Effective yields and returns

Corporate financial analysis

• Profit and loss versus balance sheet analysis
• Comparable company analysis
• Building block analysis
• Vertical, trend, and horizontal analysis
• Liquidity
• Current, quick, and cash ratios
• Asset management and activity
• AR and AP Turnover
• Cash conversion cycle
• Asset turnover
• Solvency, leverage and gearing
• Debt, equity, and times interest earned ratios
• Assessing profitability management
• Profit margin, gross margin, return on assets, return on equity
• Market and valuation
• Price-earnings and earnings per share ratios
• Modeling the DuPont identity
• The three-step models
• Calculating cost of capital and capital structure
• The Gordon dividend model
• Supernormal growth

Calculating cost of equity and cost of debt

• Computing the expected return on the market
• Computing Weighted Average Cost of Capital

Financial statement modeling

• How financial models work
• Modeling income statement
• Modeling balance sheet
• Free Cash Flow measurement (FCF)
• Using FCF to value the firm and its equity
• Sensitivity analysis
• Discounted cash flow analysis
• Developing an integrated financial model

Model construction techniques

• Data tables design
• Assumptions and input variable rules
• Array functions and formulas
• Spinner data modeling
• List box data modeling
• Option box data modeling
• Acquiring and updating data from the text, access database, SQL, and the web