Stage II - Financial & Management Accounting

Holistic corporate management requires linking profitability and financial transparency. Accounting and transfer pricing have a significant impact on the numbers and thus on the performance measurement. Accounting knowledge has therefore also become indispensable in controlling. The trend is further accelerated by an increased capital market orientation – bank as well as stock exchange – of the companies. It is therefore no longer sufficient to know how figures are generated, controllers must be able to present the planned budget, including investments, in terms of their effect on the income statement, balance sheet, cash flow and financial ratios. That is why we begin in this controlling training with integrated profit and financial planning. Investments also have to be evaluated overall, i.e. in terms of profitability, liquidity and enterprise value. Then we have comprehensive coverage of topics such as structure and fixed-cost controlling, pricing, customer value and sales controlling. Process analysis offers particular potential. This is where modern IT tools can create exciting new opportunities. We conclude with an understanding of the effect of internal charging and of (tax based) transfer pricing on key figures.

Your benefits

• Stage II – Financial & Management Accounting expands the management accounting toolbox that has been developed in Stage I. At the same time, in addition to sales controlling, you extend your skills portfolio to include controlling of strategy, profitability, finance and sales
• You develop detailed methodological skills in management accounting. You learn the importance and procedures associated with integrated management and financial planning and you will be able to apply your newly developed controlling tools in practice, after completing Stage II
• You get familiar with modern IT-based opportunities for targeted management of structure costs and sales activities
• The participants obtain implementation help with numerous feedback sessions in small groups

Seminar Content

I. Principles of Financial Accounting

• What do the balance sheet and cash flow statement provide? Differences between the Contribution Accounting and P&L (according to cost summary and cost of sales method)
• Cash flow statement based on IAS 7 or DRS 21
• Procedure for constructing the budgeted balance sheet (obstacles, simplifying assumptions) and the budgeted cash flow statement

II. Case Study for Medium Term Financial Planning

• Plausibility checks for a business plan as part of the financial diagnosis: Key ratios on liquidity, stability and profitability as a “quick check”
• Financial management and working capital in combination

III.  Value Based Controlling

• Calculation of the weighted average cost of capital WACC
• Criteria for investment evaluations: dynamic payback period, Net Present Value NPV and investment portfolio; potential weaknesses of the Internal Rate of Return IRR

• Economic Value Added^TM as measurement for value enhancement and incentivization in investment projects
• The company as an object of investment – introduction to business valuation: with the Shareholder Value (Discounted Cash Flow); plausibility check using multiples; fundamentals of due diligence

IV. Controlling of Structure Costs / Fixed Costs

• Plan and manage costs applying Zero Base Budgeting ZBB
• Introduce and use Activity Based Costing ABC with limited effort
• Process Mining: IT-based analysis & visualization of processes improve compliance, process stability and costs
• Robotic Process Automation (RPA) – a central component of digital transformation

V. Fundamentals of Sales and Customer Controlling

• Overview: integration of strategic and operational sales controlling tools
• Big Data in sales and marketing: influence of Predictive Analytics and Dynamic Pricing
• Key figures for sales in a “digital world”
• Target Costing – “strategic calculation” and management of customer value
• Workshop: profit center accounting and segment reporting (IFRS 8 compliant), customer result account, sales deductions, incentive model for the sales force, dashboard for the sales manager

VI. Transfer Pricing

• Conflicts of interest: managing performance versus tax optimization
• Where and how transfer pricing influences controller’s key figures
• Internal charging: an instrument to optimize the use of internal resources

Target groups

The Seminar Stage II – Financial & Management Accounting is addressed to managers and employees in controlling, financial accounting as well as in cost accounting, corporate planning, management information systems, business administration and development.