Business is driven by numbers. So, even for those managers who don’t have “finance” in the job title, there’s still a need to ensure enough awareness of the impact of finance on the business to provide essential context. Working as a manager in an organisation without an awareness of the way that finance affects the entire business is almost like operating in a vacuum. From the point of view of the career development of any manager, as well as the progress of the business as a whole, the benefits of an understanding of finance for non-finance managers are broad. So what benefits are there of finance for non-finance managers?
Demystifying the terminology
Ensuring comprehensive understanding of financial terms and how they relate to non-finance manager roles within the business, as well as the broader company.
Understanding the context
Everyone within a business is influenced by the figures but a lack of financial awareness may stop a non-finance manager from identifying where this is happening, and how.
Providing insight into the Profit & Loss and the Balance Sheet
A solid understanding of finance gives non-finance managers the ability to read these key sources of financial information. It also enables the information in these documents to be interpreted and understood from the manager’s own unique point of view, which filters down into decision making.
Getting to grips with the mechanics of business
Without a solid understanding of finance and how the numbers relate to an individual organisation it’s difficult for non-finance managers to interpret key financial data and ratios within the organisation. This is a key skill, not just for those who are dealing directly with the numbers but for ensuring that decision making by non-finance managers is properly informed.
The key finance questions
Financial considerations and business performance feed into every role within an organisations and particularly those at a management level. Knowledge of finance is crucial for non-financial managers in order to be able to understand and provide answers to key questions such as:
What the management accounts are and how they can be read and interpreted
The key difference between profit and cash flow
How to get to grips with the basics of budgeting and reading budget reports
There are also a number of important skills that non-finance managers need to have to inform positive decision making within the business. These include the techniques of costing and pricing and what the relationship is between the two. Cost control is also another key skill that will come in incredibly useful for those in a management position – it may not be something that is taught or learned outside of a finance role but it can still have a big part to play in making the right decisions.
If you’re looking to better understand the role that finance has to play in your organisation – and to have better informed discussions with your finance team – our training courses are designed to help. Using the language of business, and adaptable to your own company’s internal formats, it can provide the key information that all non-finance managers need to have when it comes to the business numbers.
For all your finance training needs, contact PTP today on 01509889632.