Course Description

Having a sound grasp of financial concepts and techniques is essential for business analysts. This Business Finance course introduces you to the sources and use of finance in business and explains the key documents and how to interpret them.

It goes on to tackle business cases and investment appraisal techniques before showing you how to evaluate suppliers’ finances, and how to use Financial ratio analysis and concludes with a session on Financing service delivery.

Target Audience

Business analysts, project managers, business change practitioners, and anyone in business who needs a sound grasp of financial concepts and techniques. Business Finance is also a Business Skills module on the BCS (ISEB) Advanced Diploma in Business Analysis.

Exam

During this three-day course, you’ll receive all the training you need to prepare for the BCS Professional Certificate in Business Finance examination, which is held on the final afternoon of the course. This closed-book multiple-choice examination uses business scenarios to put your knowledge of business finance to the test. A pass means you’re another step closer to achieving the BCS International Advanced Diploma in Business Analysis.

The exam is included as part of the course cost. The multiple-choice exam consists of 40 questions with a pass mark of 26 out of 40. Currently, the exam must be taken remotely using the BCS online proctoring service.

Course Content

Finance in the project lifecycle

• A financial perspective on the project lifecycle
• Published regulatory accounts
• The statement of cash flows and the distinction between cash and profit
• Cash flow forecasting

Developing the business case

• The business case in the business change lifecycle
• The contents of a business case

Constructing the financial case

• Costs and benefits to include in a business case
• Investment appraisal: payback, NPV and IRR
• The cost of capital and the weighted average cost of capital
• NPV, IRR, systemic risk and project risk
• Return on investment (ROI) and ROI and risk
• The concept of shareholder value added (SVA)

Budgets and budgeting

• Budgeting, long-term plans and corporate objectives
• Cost centres, profit centres and the use of charge-out
• Capital and revenue expenditure
• Actual versus budget comparisons and actions
• Budgetary control

Costs and cost behaviour

• Fixed and variable costs and the concept of contribution
• Breakeven analysis and the margin of safety
• Price/volume calculations and charts
• Marginal analysis: outsourcing, make or buy decisions
• Costing approaches and types of cost

Evaluating supplier financial stability

• Financial analysis and the calculation of ratios
• Calculating and interpreting ratios
• The relationship between primary and secondary ratios
• Principles of shareholder value added (SVA) and economic value added (EVA)
• The limitations of ratio analysis

Financing service delivery

• Depreciation of assets: straight-line and reducing balance
• Depreciation of assets: disposal and upgrade issues
• Financing and leasing
• Outsourcing