Course Code: 713

Duration: 2 days

Level: Basic

Fee: $1395.00

Instructor: William DuMond

CPE Credits: 14

Prerequisite: No Prerequisite Required

Accounting - Why bother? Clever Reporting Inventions that let owners/managers control and manage increasingly complex business enterprises.

Every manager needs an elementary knowledge of accounting and finance as they rise in responsibility or service their customers.

Evolving Accounting - Practical tools to solve new problems - more complex partnerships formed to spread risks require the invention of double entry bookkeeping. A need for long term large amounts of capital and borrowing to finance industrial expansion triggers financial certified accounting, The need to control immense operations and make tactical decisions leads to Managerial Accounting - the push to greater productivity and risk reduction leads to modern metric management.

The modern large scale enterprise = having multiple employees, products, locations, customers, regulators and taxing authorities driving a need for accounting rules, reporting and management techniques.

Day One Topics

Bookkeeping - The reptilian infrastructure beneath all accounting:

• Business treated as a separate entity
• Commitment of initial capital and tracking its growth over time if we are successful
• The Accounting Equation: Assets= Liabilities+Capital or A=L+C - Why it always balances
• Journals- chronological records of all changes in the equation
• ALICE - A Mnemonic for Remembering how to double enter balanced debits and credits
• Posting- Re-sorting the journal data by account type to reflect changing balances
• A Sampler of 25 entries or how to be a CFO by mastering the recurring
• Distinctions between cash and accruals-the need for adjustments (the usual suspects)
• The Accounting cycle: The monthly reporting cycle from transactions to Summary Statements
• The Three Principal Financial Statements plus One (The Funds Statement)

Financial Accounting:

• The Industrial Revolution and the new need for long term illiquid assets and symmetrical funding
• The need to manage short term liquidity and long term capital funding
• 10 Generally Accepted Accounting Principles (GAAPs) or How to Calculate Net Income
• Summary Financial Statements - How to Use Them
• A Walk through the Assets, Liabilities and Capital Accounts: Current Assets vs. Current Liabilities Prepaid and Depreciable Assets and the Controversial Mark to Market All at a point in time.
• Understanding the Income Statement- all for a period of time
• Quick review and Finale -- The future and the Debacle of 2008

Day Two Topics

Managerial Accounting: Internal, tactical aids to Improved performance.

• Managing Liquidity and coordinating optimum funding symmetry
• Responsibility Accounting - Assigning Every Asset, Liability, Income, Capital and Expense Account to a responsible individual
• Cost Centers, Revenue Centers, Hierarchical Structure Support, Allocations & MultiMargin Reporting
• Monthly Reporting Cycle - Managing Vs. Plan--Analysis By Exception---Bias towards Action
• Reforecasting and management vs. a static plan---e.g. corporate shortfall ergo beat your plan 10%
• The Annual Planning Cycle
• Informed Decision Making-Understanding Cost Behaviors-Fixed, Variable, Relevant Range
• Allocations and Multiple Margin Reporting
• Analytical Techniques: Comparisons to the 4Ps-Plan, Peer, Prior Periods, Projections
• Ration Analysis---Liquidity, Leverage, Turnover, Return on Assets/Capital
• Vertical/Horizontal Analysis

Modern Metric Management/System Design/Productivity Imperatives

• Identifying Metrics Which Indicate Quality Performance/Timeliness
• Example of Measurements of Quality - Customer Inquiries, Breaks with other records, Item Counts, Suspense Accounts, Misc. Receivables -- Aging, Proofs and Policy
• STP- Multiple Users, formats, communication Channels, New Ratios, E-mails per employee, copies per employee, energy usage per employee, running rate
• Productivity--using innovation and natural turnover to keep expenses flat and give bonuses