Course Details

This course is appropriate for a wide range of professionals but not limited to:

• SME Owners and Managing Directors
• Finance Managers and Controllers in SMEs
• Startup Founders and Entrepreneurs
• Business Development Managers
• Non-Financial Managers in Small Businesses

• Expert-led sessions with dynamic visual aids
• Comprehensive course manual to support practical application and reinforcement
• Interactive discussions addressing participants’ real-world projects and challenges
• Insightful case studies and proven best practices to enhance learning

By the end of this course, participants should be able to:

• Interpret the core financial statements to understand the health and performance of the SME reliably.
• Master working capital management, focusing on optimal cash, inventory, and accounts receivable cycles efficiently.
• Create and manage operating budgets, cash flow forecasts, and variance analyses effectively.
• Evaluate different sources of SME financing (debt, equity, grants) and understand the application process successfully.
• Apply capital budgeting techniques (NPV, IRR) to evaluate investment opportunities competently.
• Identify and mitigate common financial risks facing small businesses and ensure financial sustainability proactively.

DAY 1

Financial Statement Interpretation for SMEs

• Welcome and Introduction
• Pre-test
• The basic structure and language of the three core financial statements (IS, BS, CFS)
• Using financial ratios to assess SME performance (profitability, efficiency, leverage)
• Understanding the difference between profit and cash flow
• Key drivers of small business profitability and cost management
• Identifying financial warning signs and red flags in SME accounts

DAY 2

Cash Flow and Working Capital Management

• The critical importance of cash flow forecasting for SMEs
• Building a 12-month direct and indirect cash flow forecast model
• Optimizing the Accounts Receivable (AR) cycle for faster cash collection
• Strategies for efficient inventory management and minimizing holding costs
• Managing Accounts Payable (AP) strategically for liquidity benefits
• The cash conversion cycle: calculation and techniques for reduction

DAY 3

 Budgeting and Cost Control

• Developing practical operational and departmental budgets for the SME
• Zero-based budgeting (ZBB) vs. traditional incremental budgeting
• Variance analysis: identifying and explaining differences between budget and actual results
• Cost classification: fixed, variable, direct, and indirect costs for pricing decisions
• Break-even analysis and margin of safety calculation
• Introduction to managing overheads and reducing unnecessary expenses

DAY 4

Financing and Capital Investment Decisions

• Sources of SME financing: bank loans, lines of credit, and alternative lending
• Understanding debt structure, interest rates, collateral, and covenants
• Preparing a compelling business plan and financial projections for investors/lenders
• Introduction to equity financing, venture capital, and angel investors
• Applying Net Present Value (NPV) and Internal Rate of Return (IRR) to project appraisal
• Understanding the cost of capital and its role in investment decisions

DAY 5

Financial Risk Management and Sustainability

• Managing credit risk: evaluating customer creditworthiness and minimizing bad debt
• Currency and interest rate risk: basic hedging strategies for SMEs
• Insurance coverage and operational risk mitigation for business continuity
• The basics of tax planning and compliance for small business growth
• Creating a roadmap for financial sustainability and profitable growth
• Post-test
• Certificate ceremony