Advanced Accouting Budgeting and Finance for Project Manager #252009

Upon successful completion of this course, participants will be able to:

• Interpret key financial statements (Income Statement, Balance Sheet, Cash Flow) to understand the financial impact of projects on the organization.

• Develop a compelling business case with a robust cost-benefit analysis, including calculating Return on Investment (ROI), Net Present Value (NPV), and Payback Period.

• Create, manage, and control detailed project budgets and forecasts, understanding different types of costs (fixed, variable, direct, indirect).

• Apply Earned Value Management (EVM) techniques to accurately measure project performance and predict final costs and completion dates.

• Manage project cash flow, understand capital vs. operational expenditure (CapEx vs. OpEx), and navigate internal financial governance processes.

• Communicate project financial status effectively to sponsors, stakeholders, and finance departments.

This course is essential for project and program managers who are responsible for the financial outcomes of their initiatives:

• Project Managers and Program Managers

• Project Leads and Team Leads with budget accountability

• IT Project Managers managing large-scale technology investments

• Construction Project Managers

• Product Managers and Engineering Managers overseeing project budgets

• Senior Project Sponsors and Key Stakeholders who approve project funding

• Any professional seeking to strengthen their financial management skills within a project context

• Pre-assessment
• Live group instruction
• Use of real-world examples, case studies and exercises
• Interactive participation and discussion
• Power point presentation, LCD and flip chart
• Group activities and tests
• Each participant receives a binder containing a copy of the presentation
• slides and handouts
• Post-assessment

Day 1: Financial Fundamentals for the Project Manager

• Morning Session: Accounting Principles Demystified

  • How Projects Impact the Financial Statements: A Project Manager’s Guide to the Income Statement, Balance Sheet, and Cash Flow Statement.

  • Key Concepts: Revenue vs. Cash, Expenses vs. Expenditures, Accruals, Capitalization.

• Afternoon Session: Project Funding and Cost Classification

  • Understanding Capital Expenditures (CapEx) vs. Operational Expenditures (OpEx): Approval Processes and Financial Impact.

  • Categorizing Project Costs: Direct vs. Indirect, Fixed vs. Variable.

  • Workshop: Categorize costs from a real project example into CapEx/OpEx and direct/indirect.

Day 2: Building the Business Case and Budget

• Morning Session: The Business Case and Investment Appraisal

  • Building a compelling financial rationale: Identifying benefits, costs, and risks.

  • Introduction to Key Metrics: Return on Investment (ROI), Payback Period.

• Afternoon Session: Time Value of Money and Advanced Metrics

  • Net Present Value (NPV) and Internal Rate of Return (IRR): What they are and why they matter for project selection.

  • Practical Exercise: Calculate the NPV and ROI for two competing projects to advise on which to select.

Day 3: Creating and Baselining the Project Budget

• Morning Session: Estimation and Budget Development

  • Top-Down vs. Bottom-Up Estimating Techniques.

  • Building a Detailed Project Budget: Labor, Materials, Equipment, Contingency Reserves.

  • Creating a Cost Baseline and Obtaining Funding Approval.

• Afternoon Session: Cash Flow Forecasting for Projects

  • Translating the Budget into a Phased Project Cash Flow Forecast.

  • Managing S-Curves and understanding the impact of project timing on organizational cash flow.

  • Workshop: Develop a detailed project budget and corresponding cash flow forecast.

Day 4: Controlling Costs and Measuring Performance

• Morning Session: Earned Value Management (EVM) Fundamentals

  • The Three Key Dimensions: Planned Value (PV), Earned Value (EV), Actual Cost (AC).

  • Calculating Variance: Cost Variance (CV) and Schedule Variance (SV).

• Afternoon Session: EVM for Forecasting and Reporting

  • Performance Indices: CPI and SPI.

  • Forecasting: Estimate at Completion (EAC) and Estimate to Complete (ETC).

  • Case Study: Use EVM to diagnose the health of a troubled project and forecast its final cost and completion date.

Day 5: Financial Governance, Reporting, and Capstone

• Morning Session: Financial Controls and Change Management

  • Managing Changes: The Financial Impact of Scope Creep and the Change Control Process.

  • Managing Contingency and Management Reserves.

  • Project Closure: Financial reporting, accruals, and capitalizing assets.

• Afternoon Session: Capstone Application

  • Final Simulation: Manage a project through its lifecycle in a realistic business simulation. Make decisions based on financial reports and EVM data.

  • Presentation: Report on the project’s financial performance to the “project steering committee.”

  • Course Recap: Key takeaways and creating a personal action plan.

  • Q&A and Adjourn.