Understanding Accounts

Accountancy is the language of business, and those who do not understand it are at a serious disadvantage. Understanding the basics of financial management will give you a more informed view about your company’s performance and allow you to play an active role in shaping its strategy.

This course will help you to read and analyse Annual Reports and Accounts including Balance Sheets, Profit and Loss Accounts and Cash Flow Statements. You’ll learn how to identify trends in your company’s financial performance and how to determine if the business is financially healthy.
As you work through the course, a series of interactive exercises let you check what you’ve learned and allow you to build sets of accounts yourself, including the Profit and Loss Account and the Balance Sheet.

You'll learn how to:

• Know what a Balance Sheet is and understand what Assets and Liabilities are
• Understand why companies borrow and identify the benefits of using equity and borrowed funds
• Understand how companies and tax authorities treat the purchase of capital items
• Understand liquidity and the differences between Cash and Profit
• Measure the profitability of a business
• Understand depreciation
• Control cash and Working Capital
• Use simple ratios to measure performance

How this course can help your business:

• Have more control over your business finances
• Make sound business decisions based on accurate financial information
• Improve efficiency through improved accounting
• Develop accounting methods that suit the needs of your business
• Protect your business by adhering to the legal requirements regarding financial management
  

Course Code: 104276BT001