Certification Seminar T2
Accounting and Finance for the Human Resources Professional

Course Overview

This intermediate-level course presents an introduction to accounting practices* and will provide you with the understanding you need to interact effectively with accounting and finance departments in your company.

• Identify the key financial components of the annual report: balance sheet, income statement, statement of cash flows and shareholders’ equity/retained earnings.
• Describe the importance of cash flow to companies and shareholders.
• Focus on the measures and processes used to assess companies’ financial health.
• Recognize the measures that are affected directly or indirectly by the HR function.
• Explore methods of financing the business and financial planning issues.
• Focus on the relationship between the HR department and the finance department.

Who Should Attend

This course is intended for HR professionals with limited knowledge of accounting and finance.

What You Will Learn

Introduction to Accounting
Provides an introduction to accounting through the examination of regulatory agencies, a description of the types of accounting and a discussion of accounting principles.

• The total rewards model
• HR – a strategic business partner
• Governing bodies and policies
• Major groups of accounts
• Financial statements
• Accounting types
• Financial measures
• Problems with accounting
• Underlying principles
• Components of the annual report

The Balance Sheet
Explores each of the components of the balance sheet.

• Assets
• Liabilities
• Shareholders’ equity
• Summary concept
• Class exercise
• Liquidity measures
• Debt ratios

The Income Statement
Explores each of the components of the income statement.

• The income statement
• Revenue/sales
• Cost of goods sold
• Gross margin
• Operating expenses
• Other income and expenses
• Provision for taxes
• Extraordinary items
• Net income
• Earnings per share
• Return on sales
• Class exercise

Statement of Cash Flows and Shareholders’ Equity
Covers the statement of cash flows and shareholders’ equity and the importance of cash flow to companies and shareholders.

• Statement of cash flows
  • Methods
  • Categories
• Statement of shareholders' equity
• Review of the four required statements

Financial Analysis
Focuses on the measures and processes used to assess companies’ financial health.

• Overview of financial measures/ratios
• Liquidity measures review
• Debt ratios review
• Profitability measures
• Funds management ratios
• Other performance measures
• Review of financial measures
• Class exercise

Planning and Financing the Business
Explores methods of financing the business and addresses financial planning issues.

• Financial planning
  • Typical planning process
  • Developing business plans
  • Evaluating capital projects
• Financing the business
• Financing sources
  • Long-term
  • Leases
  • Short-term

The Strategic Partnership – Human Resources and Finance
Focuses on the relationship between the human resources department and the finance department.

• Human resources and finance
• Recording compensation and benefits costs
• Wages and salaries
• Incentive pay
• Benefits costs
• Mandatory benefits
• Welfare benefits
• Retirement plans
• Communication