This course explores the principles of financial analysis, how to control cash and work with budgets.

Open participant course: £195 per person- maximum 10 people

Closed company course: £1,000 per course - maximum 10 people

Those with existing financial knowledge who are looking to develop a better understanding of common financial terms and conventions in order to make better use of financial information.

This course is ideal for self-employed entrepreneurs or sole traders who must manage their own accounts, or budget holders who manage non-finance business functions.

Following this course, delegates will understand how to interpret the information in financial documents and use it to manage day-to-day business activity. The course will cover the terminology, conventions and formats used in accounting, commonly used financial language, the fundamentals of financial statements and key financial documents used in business. 

Statement of Financial Position and Income Statement Account

• Assets and liabilities explained:
  • Current and non-current assets
  • Current and non-current liabilities
• Business equity for sole traders and limited companies
• Income and expenditure - profit and loss
• Income statement account for sole traders and limited companies
• Determining profit and profit quality
• Reporting financial information

Financial Analysis

• Identifying parameters for analysis
• Ratio analysis and calculating ratios
• Profitability ratios:
  • Return on capital employed
  • Gross profit margin
  • Profit for the year/period
• Liquidity ratios:
  • Current ratio
  • Quick ratio
• Efficiency ratios:
  • Non-current asset revenue
  • Stock holding period
  • Trade receivables collection period
  • Trade payables payment period
• Limitations of ratio analysis

Overview of Controlling Cash

• The importance of cash
• Cash flow Vs profit
• Budgeting for sufficient cash
• How to get customers to pay quicker

Overview of Budgets

• What is a budget?
• How do budgets help businesses?
• Using budgets to manage
• Interpreting budget data

This course can be delivered remotely or in a classroom environment, to suit your requirements.

To attend remotely, delegates will require the following equipment:

• PC or laptop with a microphone and speakers (webcam is preferred but not essential)
• Access to the internet and web browser application (e.g. Google Chrome)
• An email account for file sharing