IFMA Finance Competency Course

As a facility manager, you need to speak the language of business. Money talks - and you need upper management to listen. Learn how to communicate the fiscal importance of facilities to executive management and influence decision-making. This course will teach you how to become a player instead of an observer in the organization's top-level decision-making processes.

Learning Objectives

Finance Part 1: Introduction to Corporate Finance.
Participants will master basic financial management tools, create basic financial management/analysis spreadsheet templates and then apply them to specific needs of the typical facility manager. Objectives include:

• Define purpose and functions of a corporation
• Understand economic profit and how corporations create wealth
• Define corporate finance terminology and present financial information
• Define business trends affecting FMs and understand the PPBEE cycle
• Understand financial principles and practices such as basic accounting concepts and depreciation, T-accounts, and journal entries

Finance Part 2: Financial Reporting and Asset Management.
Participants will master basic financial reporting, asset management and financial ratios and facilities metrics. Objectives include:

• Understand managerial accounting concepts, working capital, cash, cash flow, depreciation’s effect on cash flow, and computing depreciation using several methods
• Explore and define internal managerial reporting, responsibility centers, their accounting, budgeting and reporting with spreadsheets
• Understand the definitions and categories of cost, cost accounting, job order costing, process costing, activity-based costing, and unit costing.

Finance Part 3: Managerial Accounting.
Participants will master basic managerial accounting principles. Objectives include:

• Understand managerial accounting concepts, working capital, cash, cash flow, depreciation’s effect on cash flow, and computing depreciation using several methods.
• Explore and define internal managerial reporting, responsibility centers, their accounting, budgeting and reporting with spreadsheets.
• Understand the definitions and categories of cost, cost accounting, job order costing, process costing, activity-based costing, and unit costing.

Finance Part 4: Cost Control, Forecasting, and Budgeting.
Participant will understand the concepts of Cost Control, Forecasting, and Budgeting through self-study and practice exercises. Objectives include:

• Define and understand avoidance and minimization of cost control
• Explore financial forecasting and its benefits
• Understand the principles, practices, and applications of the operating budget

Finance Part 5: The Capital Budget.
The capital budget will be addressed and participants will be introduced to the principles, practices, budget applications, and development of the capital budget. Objectives include:

• Understand rate of return, marginal cost of capital, capital rationing, useful life, time value of money, compounding, discounting, time zero, the differential concept, and the capital budget risks
• Identify principles of the capital budgeting practices, types of capital budgets, development, costs and benefits of the capital budget as well as after-tax cash flows, depreciation, tax on sale of replaced assets, the accept/reject decision and selecting alternatives for the capital budget process will also be addressed
• Understand and incorporate the capital budget applications comprised of internal rate of return, payback, and profitability index. Determination of the best method and selection criteria will be addressed.
• Develop a capital budget by incorporating the step by step process provided in the lesson.

1.5 CEUs 15 CFM Maintenance Points