If you feel that you are not well versed in financial management, you need to attend training and familiarise yourself with financial business terms. Knowing the jargon and arranging coursework can assist you as a manager. It can also lead to promotions if you are currently pursuing a management career.
Learning the Basics
Because accounting is the language of business, you should have a solid understanding of how finance is used in business settings. Improving your financial knowledge includes learning key financial terms and improving your skills for managing your business’s cash flow.
Whether you work as tradesperson, are a business manager, or are even self-employed, it pays — literally — to know how to manage money in a business setting. For example, all managers should be familiar with the following:
- Understanding how the bookkeeping is set up
- Making decisions about equipment investments
- Managing debts, including paying off suppliers
- Organising and managing cash flow
- Deciding on payment terms and knowing the basics of collecting payments
- Managing the costs of inventory and determining the turnover rate for your stock
Whether you are a staff member in a company or are attending a financial management course yourself, the training will help you take the reins in a business setting. A basic course will assist you in learning the fundamentals, including record-keeping essentials and, again, cash flow management.
Make Decisions More Easily
As a manager, it is difficult, if not impossible, to avoid financial jargon. However, learning the terminology will assist you in gaining a clearer understanding of finance. It is also important to ask accountants questions to improve your financial literacy. If you are fully informed in this respect, you can make business decisions and uncover mistakes with greater ease.
For instance, you should be familiar with such terms as factoring, amortisation, depreciation, and auditing. You should also be able to talk fluently about break-even points (where a business’s expenses equal its income) and know such terms as benchmarking, capital costs, or hire-purchasing.
Learning Finance Terms
If you are not accustomed to using finance terms on a regular basis, you may have a difficult time communicating on the job. However, you need not despair. The management of finances is part of a business manager’s job. In time, with experience and regular training, you will become accustomed to speaking the language.
Financial Development for the Non-Financial Manager
A great course to take for a non-financial manager is financial development. This course develops your financial skills so can you better understand the entire business picture. People attending this course might include a new manager or a manager who would like to freshen up his or her financial knowledge. The course is also beneficial for marketing or sales employees who wish to understand financial reporting.
Regardless of your exact reason for the training, it can be invaluable, no matter your current occupation.