Financial Management Training

Introduction to the project

Background

Enterprise Incubator Fund has been established in the framework of the World Bank Enterprise Incubator project. The key role of the Incubator is developing a more coherent and effective framework for IT business support, as part of the Government's commitment to raise productivity, increase competitiveness and support the creation of a modern IT cluster in Armenian economy. In accordance with the project objectives Incubator would provide business services to interested clients as well as would provide technical assistance and training for software development to EIF tenants and clients including (a) students/postgraduates of technical departments of public and private training establishments (b) managers and top level technical staff of local IT companies, (c) technicians/professionals with IT related background.

Objective

Objective of the assignment is to strengthen the local private sector capacity by providing local IT Managers and Financial Specialists with the techniques for Effective Business Planning & Budgeting, overview of foreign investment markets operating principles and financial statements analysis capability.

Brief Description of the Content

This project was aimed at retraining 10-15 Chief Executive Officers of and Financial Managers / Directors of Information Technology Companies successfully operating in Armenian and International Markets. It will cover the following topics:

Module 1

Financial Accounting Environment - (6 hours). Basic financial definitions & terminology, discussion of how to read & understand balance sheets, income statements, & cash flow statements, & additional financial topics; International Accounting Standards.

Module 2

Financial Statement Analysis - (6 hours). Ratios & other tools for analysis of balance sheets, income statements, & cash flow statements including: liquidity analysis, leverage analysis, profitability analysis, business valuation, cash flow, inventory & receivable efficiency, etc.

Module 3

Techniques for Effective Business Planning & Budgeting (6 hours). Business planning progression, the business plan document, budgeting techniques budget control & analysis, & miscellaneous planning & budgeting topics.

Module 4

Tax System of Armenia - (6 hours). Tax Legislation in Armenia (including latest amendments).

Module 5

Financial Markets Fundamentals and Types of Enterprise Funding - (6 hours). Inside Armenia: self - financing, equity financing and debt financing; Sources of Funds in Armenia. Outside Armenia: Understanding the Financial Press. Financial Markets Fundamentals: Inflation, Interest Rates, Economic Growth Market Expectations. Venture Funds / types and requirements. Current situation with the venture funding. Recommended strategies and venture funding stages. Investor expectations and reality. Bootstrapping.