COURSE OVERVIEW:

Welcome to The Business Cycle course. This program has been designed to equip you with a practical understanding of how a business is established, financed, operated, and measured through the recurring cycle of transactions that generate value. You will explore how businesses are set up, the resources required to begin trading, and the financial principles that govern purchasing, production, sales, payments, and reporting. You will also examine the role of accountants, the meaning of assets and equity, and how each month’s activities contribute to financial performance.

This course begins by clarifying what a business cycle is and how a company is set up. This section explains the operational and legal steps required to start a new business, the resources needed at commencement, the nature of the moving balance sheet, the cautious approach taken by accountants, and the concept of the organisation’s greatest asset.

The next learning area focuses on the transactions that begin the operating cycle. This section explains how businesses buy raw materials, create value, recognise a sale, arrange delivery and payment terms, manage cash and profit, process customer payments, and understand why owners’ equity is treated as a liability within the accounting framework.

The next learning area examines the practical activities involved in setting up and running a business. This section outlines the operational flow of Month 1, including recruitment costs, cash payments for raw materials, bidding for orders, managing 60-day customer payment terms, paying ongoing bills, and constructing the profit and loss account and balance sheet for the period.

The next learning area explores the Month 2 business cycle. This section explains how records of money owed by customers are updated, how money owed to suppliers is tracked, when purchases are recognised, how and why companies approach banks for loans, the implications of paying interest, and the process of balancing the books and settling outstanding costs.

The next learning area highlights the broader financial and operational considerations that influence each monthly cycle. This section explains how liquidity, cash flow timing, credit terms, inventory management, production efficiency, and accurate record-keeping determine the organisation’s stability and ability to meet its obligations.

The next learning area further examines the strategic importance of understanding the business cycle as a managerial tool. This section explains how leaders use financial statements to assess performance, identify strengths and weaknesses, improve pricing and purchasing decisions, and anticipate future cash needs to support growth and sustainability.

By the end of this course you will be able to understand the full sequence of activities within a business cycle, establish and operate a new business effectively, manage purchasing and sales processes, interpret payment terms, construct and analyse financial statements, maintain accurate records of assets and liabilities, and apply financial insights to strengthen business performance and long-term success.

LEARNING OUTCOMES:

By the end of this course, you will be able to understand:

·       What is a business cycle?

·       How to set up a company?

·       What would you need to start a new business?        

·       The moving balance sheet

·       The prudence of accountants

·       What is our greatest asset?

·       Buying raw materials

·       How to create value?

·       When is a sale considered a sale?

·       The delivery of goods and payment arrangements

·       Cash and profit in the business

·       Receiving customers’ payment

·       What is owners’ equity/funds and why is it a liability?         

·       Setting up and running a business

·       Month 1 business cycle

·       Recruitment costs

·       Cash payment for raw materials

·       Bidding for orders

·       Receiving payment on 60 days

·       Paying the bills

·       The profit and loss (P&L) account 

·       The balance sheet       

·       Month 2 business cycle        

·       Updating records of money owed by customers

·       Money owed to suppliers

·       When is a purchase a purchase?

·       Going to the bank for a loan

·       Paying bank interest

·       Balancing the books    

·       Paying outstanding costs

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.

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”.