Why Finance Courses for Non-Finance Managers is Important

Finance is the lifeline of organisations.

Without adequate financial management, companies won’t know how to price their products, budget, or make a profit. This is why financial literacy for non-finance managers and employees is crucial.

Not only will financial literacy enable companies to perform better, but it’ll also allow them to retain employees and create a happier workplace.

MANCOSA skillME offers a Finance for Non-Finance Managers short course that’ll equip managers with the financial skills they need to attain better results for their lives and companies.

This article will explain the importance of financial literacy in the workplace. It’ll cover topics including the financial skills non-finance managers need, how finance courses for beginners can help improve employability, and more.

The importance of financial literacy in the workplace

Financial literacy matters in the workplace. The ability to understand financial skills such as budgeting and finance management is especially crucial with rising costs, including the rising cost of fuel, equipment, employee turnover, and other business and personal expenses.

Here are the three main reasons why financial literacy is now more critical than ever:

1. Relieves employee stress

When workers stress over finances, it results in physical symptoms, such as sleep problems and high blood pressure. In turn, this often leads to avoidance of medical care, which is why The World Health Organization called stress the “health epidemic of the 21st century”.

Being informed about finances and how it all works together can help workers and managers experience less stress at work and in their private lives.

2. Boosts productivity

Employees can be far more productive when they aren’t occupied with money worries.

A study by the Global Financial Literacy Excellence Center (GFLEC) found that workers with low financial literacy can spend up to six hours of their workday thinking about and dealing with problems related to personal finances.

Thus, ensuring employees are financially literate means they won’t waste time worrying about finances and instead be highly productive at work.

3. Helps with retention and recruitment

Today’s employees see wellness programs as a high-value benefit when considering companies to work for. Financial wellness, in particular, is something that’s become a necessity since, as mentioned above, it will significantly reduce stress levels.

Therefore, if a company cares about its employee’s financial well-being, it stands out amongst competing companies. This could help them attract better-quality workers and keep them satisfied.

Why non-finance managers need financial skills

Managers’ financial backgrounds are crucial for effectively managing day-to-day operations in all departments. This includes non-financial managers and executives.

This is because all managers and executives who deal with business operations need to know how company finances work to make mindful financial decisions that’ll help the company reach its goals.

For example, while IT managers don’t work directly with finances, they’re still responsible for choosing equipment and tools. If they have a better understanding of finances, they may be inclined to think carefully about the tools they use vs those that are just nice to have, which is why accredited finance courses have become even more relevant to those in managerial positions.

Non-finance managers and executives who take finance courses will attain the financial knowledge and skills necessary to:

Analyse financial statements.
Understand costs and tactics to reduce them.
Communicate more efficiently with key financial sources, including investors and lenders of their organisation.
Use the core concepts and techniques of finance training and accounting for better decision-making.
Understand financial forecasting so they can plan for the future.
Deal with suppliers.
Manage departmental budgets.
Evaluate projects.

It’ll also help these managers make better decisions regarding the pricing of products or services based on the amount of work that goes into it.

For example, a design manager will be able to determine how much a design project will cost based on factors such as the following:

The number of hours spent strategising.
The number of hours spent on the actual design.
The equipment and software used to complete the project.

This is the same for non-finance managers in all other departments.

Bottom line: Financial literacy skills can help managers be high-impact leaders trusted by their subordinates and employers.

Problems faced by non-finance managers

Regardless of how excellent a manager is, a lack of financial literacy will lead to many problems.

Without proper budgeting, non-financial managers can quickly run into a lack of adequate cash flow. As a result, they may not have enough funds to finish a project as they’d initially planned.
They may end up pricing a service or product wrong — resulting in a massive financial loss for their employer.
They won’t be able to communicate effectively with key financial stakeholders of their company, leading to confusion and unprofessionalism.
They won’t be able to deal with suppliers effectively and could spend a lot more on something they could’ve paid much less for.

Benefits of finance courses

Online finance courses for managers outside the financial department are designed to explain the core concepts of finances, including terms, tools, and techniques.

This includes budgeting, ratio analysis, financial forecasting, and more techniques for your professional and personal life.

Taking finance courses will help:

Improve your money management skills: It’ll give you a good grasp on finances and how they must be managed. You’ll discover how to create a budget, save for the future, and keep track of spending.

Get out of debt: A financial management course will assist you in getting back on track with your debt. When you learn how to manage your finances, you’ll make better decisions and can develop a debt-reduction plan that’ll help you pay off your debt fast.

Build your credit score: Making wise financial decisions can help you improve your credit score. A finance management course will teach you about the elements that affect credit scores so you can learn how to use your credit card wisely.

Register for finance courses with MANCOSA SkillMe

Are you ready to improve your skills with finance short courses so you can make better decisions that’ll improve your career and personal life?

The Finance for Non-Finance Managers short course will teach you all about practical budgeting fundamentals, financial forecasting, cash flow management, interpreting financial statements, and collecting and using financial data.

Need more options to upskill? Look at our short business courses that’ll expand your skills to make you a highly sought-after employee with more career opportunities.