Financial Accounting Made Fun: Eliminating Your Fears

Week 1:Balance Sheet and Transaction Analysis

• Why do we need financial statements? What purpose do they serve?
• What kind of information is contained in the balance sheet?
• How are day-to-day operating decisions captured and recorded?
• How are start-up activities (e.g., raising capital, investing in your business) reflected in the financial statements?

Week 2:Income Statement and Cash Flows

• How do sales and operating expenses impact earnings and cash flow?
• What are the early warning signs that my business may run out of cash?
• Is all growth the same? What is the difference between good growth and bad growth?

Week 3:Ratio Analysis

• What are the key ratios for evaluating profitability, return on investment, and liquidity or solvency?
• How well is my business performing? How are my competitors doing?
• How do different strategies and business models reveal themselves in the financial statements?

Week 4:Forecasting

• How do I translate my growth plans into a forecast of profits and cash flow?
• How can a forecast help me manage my business more effectively?
• What do potential investors or creditors look for in a forecast?