Financial Modelling – Introduction

1.    Understand the difference between a budget and a model

2.    Be able to explain areas in a business where a model is most useful

3.    Be able to identify and calculate a breakeven point through modelling

4.    Be able to construct and manipulate a series of financial models

What is Financial Modelling

Financial modelling is the task of building an abstract representation (a model) of a financial decision making situation. This is a mathematical model, such as a computer simulation, designed to represent (a simplified version of) the performance of a financial asset or a portfolio, of a business, a project or any other form of financial investment.

Financial modelling is a general term that means different things to different users. In business schools it means the development of a mathematical model, often using complex algorithms, and the associated computer implementation to simulate scenarios of financial events, such as asset prices, market movements, portfolio returns and the like. Or it might mean the development of optimization models for managing and controlling the risk of a financial investment. In the accounting profession financial modelling is defined as cash flow forecasting, involving the preparation of large, detailed spreadsheets for management decision making purposes.

While there has been some debate in the industry as to the nature of financial modelling: whether it is a tradecraft, such as welding, or a science, such as metallurgy, the task of financial modelling has been gaining acceptance and rigor over the years. Several scholarly books have been written on the topic, in addition to numerous scientific articles, and the definitive series Handbooks in Finance by Elsevier contains several volumes dealing with financial modelling issues.

There are non-spreadsheet software platforms available on which to build financial models. However, the vast proportion of the market is spreadsheet-based.In a professional environment effective managers are those who make the best decisions. The best decisions are made when managers are able to understand fully the implications of each option available to them.

One the best ways managers can understand these implications is through financial modelling. More often than not the question put to the accounts will be, “What if?”

By being able to construct and prepare models which will be able to clearly display the bottom line effect of any potential change accountants are able to answer these questions. Big parts of an accountant’s role involves documenting historic transactions, this is like driving a car whilst looking in the rear view mirror.

Management accountants are just as likely to be budgeting the future transactions; this is at least looking forward and using the windscreen to drive the car.Models give you a range of outcomes so that not only are you looking forward, but are able to see the obstacle in the road and navigate around potential problems.This is one way in which accountants can add value to a business, and as they are only ever judged on the integrity of the information that they produce.

Solicitors' Accounts

1.    Principal responsibilities under the SAR’s (solicitors accounting rules)

2.    Use of client accounts

3.    Receiving/transferring costs & disbursements

4.    Accounting requirements

5.    Accountant’s reports

Charities' Accounts

·       Charities Accounts – Legal requirements

·       Financial responsibilities

·       Financial reporting

·       Reporting under SORP 2005

MS Project

This two-day instructor-led course provides students with the knowledge and skills to build, maintain, and control well-formed project plans.

This course is intended for both novice and experienced project managers and schedulers. These individuals are involved in or responsible for scheduling, estimating, coordinating, controlling, budgeting, and staffing of projects and supporting other users of Microsoft Office Project. A familiarity with key project management concepts and terminology is recommended as well as basic Windows navigation skills.

After completing this course, students will be able to:

·           Get started with Microsoft Office Project 2007.

·           Create and define projects.

·           Work with estimates and dependencies.

·           Work with deadlines, constraints, and task calendars.

·           Work with resources.

·           Predict behavior by using task types and the scheduling formula.

·           Customize and format Microsoft Project views.

·           Analyze resource utilization.

·           Track progress.

·           Create project reports that analyze project, resource, and task data.

·           Manage multiple projects.

Recruitment Strategy for Employers

This workshop is ideal for employers who want to get their staff recruitment right.
When a business recruits the wrong staff due to lack of recruitment strategy the cost is often very expensive. It is therefore important to learn to develop an effective recruitment strategy.

·       Developing a strategy

·       Sourcing the right candidate

·       Assessment strategy

·       Selection methods

·       Employment contracts