Overview
This intensive course will provide a good level of knowledge and ability of accounting and finance, providing the ability to evaluate and understand a given supplier, interrogate what is presented, and use this as a basis to make key decisions or manage risk.
The course provides an intermediate level of learning into accounting and finance, covering how to understand and interrogate key financial statements such a profit and loss, balance sheet and cash flow. It covers key ratios and how to test what is being presented to gain insight. It includes practical case studies to apply learning in a real context.
Classroom
2 days
Virtual
4 x 3.5 Hours
Course Content
Introduction to finance and understanding the supplier’s position
- Introduction to finance
- Financial reporting supporting company decision-making
- Key financial statements including Profit and Loss, Balance Statement and Cash Flow Statement
Application of financial information
- Analysis of a supplier using ratios and key metrics
- Identify key supplier financial information
- Understanding the supplier’s position
How supplier’s cost and sales information informs us
- Supplier costs and ‘should cost’ modelling
- Using sales and purchase data to help health check the supplier
- Researching and obtaining key supplier financial information
Supplier financial management planning and sources of capital
- Management information useful for a procurement team to aid decision-making
- Principles of financial and management accounting, including reporting, budgeting, and decision-making
- Supplier’s sources to raise capital and other investments
- Developing a supplier management plan using financial due diligence
Learning Objectives
By the end of this course delegates will be able to:
- Describe how financial systems and reporting helps the decision-making and running of an organization
- Understand a supplier’s financial position, both overall, and for specific products/services, in effective procurement practice
- Describe the different ways procurement teams can understand the suppliers’ position and the associated difficulties
- Interpret the three key financial statements: Profit and Loss, Balance Sheet and Cash Flow Statement
- Understand how a Profit and Loss account works and what they can tell us about a business
- Learn the anatomy of a balance sheet and the role of working capital management
- Understand the importance of cash flow and identifying risk in a business
- Perform basic analysis of supplier financial information using key ratios and metrics
- Describe and utilize ways to obtain key supplier financial information
- Understand the principles of financial and management accounting. Including reporting, budgeting and decision-making
- Explore what can be derived from sales and purchase data to help health check the supplier
- Identify the management information useful for a procurement team to aid decision-making
- Understand supplier costs and ‘should cost’ modelling
- Categorize suppliers with appropriate financial due diligence to develop a supplier management plan
- Understand and identify supplier’s sources to raise capital and other investments