COURSE OVERVIEW
A company's bottom line profit margin is the best single indicator of its financial health and long-term viability. Investors are constantly searching for one golden key measurement that can be obtained by looking at a company's financial statements for evaluating a stock, but it is simply not that easy.
To accurately evaluate the financial health and long-term sustainability of a company, a number of financial metrics must be considered. There are a number of financial ratios that can be reviewed to gauge a company's overall financial health and to make a determination of the likelihood of the company continuing as a viable business. The general trend of financial ratios, whether they are improving over time, is also an important consideration.
For many managers, financial statements and budgets are a mystery. If you normally spend your workday planning marketing campaigns or recruiting new employees, you probably don’t look forward to preparing your annual budget—or reading through your company’s financial statements.
The secret to success is that you don’t have to learn everything there is to know about finance and accounting. You only need to learn enough to know the right questions to ask.
This course isn’t designed to make you into a finance manager or an accountant. Instead, it presents basic information that will help you build your skills.
This course will help give you the financial knowledge you need to succeed at your job. The first part of this course covers the basic accounting concepts and financial statements. The second half covers the budgeting process. This course will be the starting point in your journey to evaluating and understanding financial health.
LEARNING OUTCOMES:
By the end of this course, you will be able to understand:
- What is meant by organisational financial health?
- The basic finance and accounting terms
- The sources you can contact in your investigations of financial statement information
- The importance of timing
- The key points about accrual accounting
- What the auditor do?
- The sources you can use to learn more about the rules and regulations governing publicly traded companies
- The three most common financial statements
- The balance sheet
- Why read the entire income statement?
- The cash flow statement
- Why take a closer look at the footnotes?
- What the footnotes offer?
- How to determine if inventory is too high?
- How to check the accuracy of the inventory balance?
- Why look at adjustments?
- What to follow as you check accounts receivable?
- How to check revenue recognition?
- How to ensure that sales are recorded properly?
- Financial statement analysis
- How to use key ratios?
- Why PPE is important?
- The facts about assets
- The budgeting process
- How to set realistic sales goals?
- How to assess expected future sales?
- How to make judicious cuts?
- How to track cash flow?
- How to prepare your cash budget?
- How to spot potential problems?
- The steps you incorporate into your budget analysis
- How sales affect costs?
- How to sort fixed costs from variable costs?
- How to select the right type of budget?
- How to prepare your flexible budget?
COURSE DURATION:
The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.
COURSE REQUIREMENTS:
You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.
COURSE DELIVERY:
Purchase and download course content.
ASSESSMENT:
A simple 10-question true or false quiz with Unlimited Submission Attempts.
CERTIFICATION:
Upon course completion, you will receive a customised digital “Certificate of Completion”.