Finance for Project Managers in IT Company

Financial reporting

• Corporate finance system.
• Financial accounting principles. Accrual basis of accounting.
• Understanding the balance sheet, income statement and cash flow statement of the IT company.

Key accounting
definitions

• What is the difference between expenses (OPEX) and investments (CAPEX, assets)?
• Assets, liabilities and equity.
• Revenue, expenses, amortization and depreciation, profit or loss (net income).
• Proceeds (CF-in) and payments (CF-out), net cash flow.
  

Financial statement
analysis

• Profitability ratios.
• Efficiency ratios.
• Liquidity ratios.
• Lender (solvency, gearing, leverage, debt) ratios.
• Investor (value) ratios.

Management accounting

• Cost breakdown.
• Direct and indirect costs.
• Fixed and variable expenses.
• Relevant costs.

Budgeting

• Budgeting process.
• Forecasting and its relationship with budgeting.
• Coordination, delegation and motivation.
• Budgetary control.

Decision-making

• Minimum pricing (maximum discount) decisions.
• Shutdown decisions: deleting a segment or temporary closure.
• Make or buy (outsource) decisions.

Working capital management

• Receivables management.
• Payables management.
• Managing cash and working capital based on profit / value maximization.

Investment appraisal

• Investment appraisal techniques (NPV, IRR, PP).
• General logic of investment project appraisal: assumptions and constraints, financial model templates.