Financial Planning for SMEs Training Course

Participants can interpret financial statements and identify the drivers of financial performance.

• Income statement drivers separated into volume, price, mix and cost effects
• Balance sheet movements traced through working capital, debt and retained earnings
• Cash flow statement reconciles profit, non-cash charges and cash movements
• IFRS for SMEs recognition principles inform management-accounting adjustments
• Ratio analysis assesses liquidity, profitability, efficiency and solvency trends
• Common-size statements reveal structural changes and unusual period movements

Participants can build integrated forecasts from operational drivers and tested assumptions.

• Driver-based revenue forecast connects sales volumes, prices, conversion and churn
• Cost forecasts distinguish fixed, variable, step and discretionary expenditure
• Three-statement model links profit, financial position and cash flow
• Scenario analysis tests base case, downside case and management response
• Assumption register assigns sources, owners, review dates and confidence levels
• Forecast version control preserves audit trail and decision accountability

Participants can prepare short-term cash forecasts and manage liquidity risks.

• 13-week rolling cash forecast built from receipts, payroll and supplier data
• Direct and indirect cash forecasting methods compared for different planning horizons
• Cash conversion cycle diagnoses timing gaps across receivables, inventory and payables
• Collections schedule prioritises overdue accounts, credit limits and dispute resolution
• Payment calendar sequences statutory liabilities, suppliers, debt service and payroll
• Minimum cash buffer set using volatility, obligations and contingency triggers

Participants can diagnose working capital constraints and set improvement actions.

• Accounts receivable ageing identifies collection risk, concentration and credit deterioration
• Inventory turnover analysis separates safety stock, obsolete items and replenishment delays
• Accounts payable strategy balances supplier terms, discounts and relationship risk
• Working capital policy sets days-sales-outstanding, days-inventory and days-payables targets
• Operating cycle improvements quantified through cash release and service impacts
• Credit control checklist defines onboarding, limits, escalation and write-off approval

Participants can prepare budgets and reports that support accountable financial control.

• Annual budget aligns strategic priorities, operating plans, capital spending and funding
• Zero-based budgeting challenges inherited costs through activity-level justification
• Flexible budgets restate expected costs at actual or revised volumes
• Variance analysis separates price, volume, efficiency and timing causes
• Responsibility centres assign revenue, cost, profit and investment accountability
• Monthly management pack combines KPIs, variances, forecast changes and actions

Participants can assess financing needs and prepare evidence for funding discussions.

• Funding needs sized from forecast deficits, growth plans and refinancing dates
• Debt capacity assessed using debt-service coverage, interest cover and cash headroom
• Term loans, overdrafts, invoice finance and leasing compared systematically
• Equity, shareholder loans and retained earnings evaluated against ownership objectives
• Weighted average cost of capital supports financing-option comparisons
• Lender information pack presents forecasts, covenants, security and repayment capacity
• Loan covenants monitored through ratios, testing dates and remedial actions

Participants can evaluate investment proposals and profitability decisions using cash-based methods.

• Capital expenditure proposals structured with scope, costs, benefits and dependencies
• Net present value discounts incremental cash flows using required returns
• Internal rate of return interpreted alongside reinvestment and scale limitations
• Payback period highlights liquidity exposure and recovery timing
• Break-even analysis calculates sales volume required to cover fixed costs
• Contribution margin guides pricing, product mix and customer profitability decisions
• Post-investment review compares approved assumptions with realised financial results

Participants can establish financial controls and monitor risks affecting SME plans.

• Risk register records likelihood, impact, controls, owners and review cadence
• Sensitivity analysis quantifies exposure to sales, margin, interest and exchange changes
• Fraud risk controls separate authorisation, custody, recording and reconciliation duties
• Financial policies define approval limits, delegated authority and exception reporting
• Management dashboards distinguish leading indicators from outcome measures
• Data-quality checks reconcile source systems, assumptions and reported results
• Business continuity funding plans address disruption, insurance and emergency liquidity

Participants can communicate financial recommendations and structure a practical implementation plan.

• Financial diagnostic converts findings into prioritised actions, owners and milestones
• SMART objectives define measurable targets for cash, margin and growth
• RACI matrix clarifies finance, sales, operations and owner decision responsibilities
• Advisory conversations frame options, trade-offs, evidence and recommended decisions
• Monthly review cadence updates forecasts, actions, risks and lender communications
• 90-day implementation plan sequences quick wins, dependencies and review points
• Board paper structure presents decisions, financial implications and approval requests

Participants should understand basic financial statements and common accounting terms. Advanced modelling, formal treasury knowledge and previous advisory work are not required.

Bring a laptop with spreadsheet software for the financial modelling and forecasting work. If permitted by your employer, bring non-confidential examples of current planning, cash flow or reporting challenges.

The course is designed for finance managers, controllers, management accountants, advisers, owners and operational managers working with SME financial decisions. It is especially relevant where finance teams need stronger cash planning and decision support.

This course focuses on practical planning and advisory decisions within SMEs, including cash forecasting, working capital, budgeting and funding readiness. Accounting courses focus more on transaction recording and reporting rules, while corporate finance courses may focus more heavily on valuation, capital markets and large-company transactions.

Participants can use the templates and methods to improve forecast assumptions, build a weekly cash forecast, review working capital and prepare clearer management reports. The final implementation plan identifies actions that can be introduced during the following 90 days.

The course runs from 08:30 to 16:30 each day, with approximately 6.5 contact hours daily and 32.5 contact hours overall. Time is divided across ten modules, combining instruction, cases, spreadsheet analysis, group work and application planning.