Optimising the Profitability of Green Investments

Note: The course can be attended as a stand-alone session or as part of a combination of courses during Green Power Week.

Introduction | Enquiry | Registration | Download Brochure

Course Objective

Green businesses, like any other, ultimately depend on money – attracting it, managing it, making it and investing it. In whichever role you work, knowledge of basic financial terminology and accounting principles can do nothing but enhance your awareness of your own and competitors’ business operations, enable you to better plan and deliver business strategy, and hence increase your effectiveness (be it as an employee or entrepreneur).

In particular, it is the nature of business that resources must be committed in order that gains are achieved; with gains forecast based on financial assumptions, which risk being flawed. By improving your understanding of accounting techniques, risks and methodologies used in business appraisal, this course ensures you will be better placed when making investment decisions.

We are thus pleased to offer this concise, 1-day introduction, aimed specifically at non-finance professionals and delivered by an expert who is able to explain the issues with particular reference to a “green” industry context.

Style

The course will be run in an informal manner which allows and encourages time for discussion and questions, ensuring that participants get the most out of their day.

Prior finance knowledge is neither assumed nor required. Each of the principles described will be illustrated using worked examples

Timing

Course begins:                  09:00
Course ends:                     17:00

(Timings are approximate and include lunch plus morning and afternoon refreshment breaks)

Your Trainer

John Freeman is founder of Professional Support Ltd, an organisation advising and coaching companies in issues such as accountancy, business development, company management, leadership and people management. He has worked as a financial analyst for Ultra Green Group, a  multinational enterprise, preparing financial and business models covering a range of green technologies including biofuels, waste management and biomass energy.

Agenda Details

Key aims of the day, understanding:

• how a set of accounts replicates a business model
• how money works in a green business and how accounting gives control
• the difference between published financial statements & internal management accounts
• how management accounts and budgets are prepared

Fundamental Principles

• The differing types of green business:
  • large groups, limited companies, partnerships and so on.
• Accounting principles and the accounting equation
• Funding sources and their expectations
• Key financial statements:
  • The Balance Sheet
  • The Profit & Loss account
  • Key ratios
• The Business model vs. the Financial Model
• Published accounts vs. budgets & management accounts

Presenting or Analysing Balance Sheets and P&L accounts:

• Cash vs. Profit
• Balance sheet limitations
• Types of assets and how to account for them
• Tangibles and Intangibles
• Treatment of Interest
• Depreciation, amortisation and their impact
• Asset Revaluation
• R&D, and how to treat it
• Accounting for groups of companies
• Analysing companies from their published accounts and other information sources

Forward planning:

• Management accounts as distinct from financial accounts
• Operating, cash and capex budgets
• Future planning vs. historical snapshots
• Golden rules of budgeting and successful forward planning
• Scenario planning

Throughout: worked examples and models from the green sector, including:

• Accounts analysis
• Financial and Business Models
• Scenario Planning

 

Green Power Academy

The Green Power Academy has been established to provide the quality, impartial, informative and enjoyable training needed to increase and distribute knowledge and skills to green energy industry professionals.  www.greenpoweracademy.com