Member price – £295 + VAT
Non-member price – £350 + VAT

Duration – 1 Day

Course Overview:

This interactive course combines formal content, workshop activities and individual exercises, taking a practical, pragmatic approach to financial matters. It also demystifies the jargon, conventions and formats of accounting.

At the end of the course participants will have explored:

• Key financial language and the fundamentals of financial statements
• Basic financial documents used in business
• Interpreting the information in financial documents, and use it to manage day-to-day business activity
• This course is AAT accredited, all notes and assessment sheets are provided.

Who Should Attend?

Suitable for managers and administrators looking to develop a better understanding of common financial terms and conventions in order to make better use of financial information.

Course Contents

Statement of Financial Position & Income

Statement Account:

• Assets & Liabilities Explained:
  • Current & Non-Current Assets
  • Current & Non-Current Liabilities

• Business Equity for Sole Traders & Limited Companies
• Income & Expenditure—Profit & Loss
• Income Statement Account for Sole Traders & Limited Companies
• Determining Profit & Profit Quality
• Reporting Financial Information

Financial Analysis:

• Identifying Parameters for Analysis
• Ratio Analysis & 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
• Getting Customers to Pay Quicker?

Overview of Budgets:

• What is a Budget?
• How do Budgets Help Businesses?
• Using Budgets to Manage
• Interpreting Budget Data