Finance for Non Finance – why bother ?

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Finance for Non-Finance

Why should you bother with some training for finance topics if you are a non-finance professional?

It is a known fact that the modern business environment of the 21st century is getting more and more complex.

Investors are more cautious when and where to invest their money.

The sole reason for the existence of businesses is to create value and wealth for their shareholders.

To break the topic down at a micro level, we have a business organization that consists of some “technical” and some “business” people. The “technical” people of business enable the business by creating and materializing the business idea of the shareholders. The “business” people drive the business by creating transactions that create business value. Business value can be created only by the best possible understanding of the core of the business, of the main business activity. Also the business enablers, the “technical” people need to understand as good as possible what is driving the business, what and how business value is created.

Therefore, finance for a non-finance professional is an important topic for anyone of the “technical” people. They will get a better understanding of how the business organization is transforming the products and services into business value.

The business value is affected by the core activity in the entire financial exposure, the balance sheet shows what the business owns in assets and how those have been financed. The immediate results of the business activity can be seen in the Profit and Loss Statement. The business fuel, the cash, can be read in the cash flow statement. The understanding of the financial statements is only the first step towards better costing and pricing of the core activity output, products, and services.

So to come back to the headline of this post, why should you as a non-finance professional bother with finance topics?

Some of the answers to this question can be found below:

  • become better at what you do
  • understand also the implications of the business output
  • read the financials of other companies and competitors
  • come up with better and more efficient products and services
  • ….and many more

I am keen to receive all your opinions and comments regarding the finance for non-finance training topic over social media.

 

 

 

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