What You Will Learn :
- Understand the terminology used on financial statements for more meaningful conversations
- Demystify the rules of capital expenditure vs operational expenditure in order to understand the decisions made by the business and the impact on results
- Explain the importance of depreciation and its impact on performance
- Identify the key components in the working capital cycle and how it can be optimised in the business to reduce risk and improve cash flow
This course looks at the key knowledge needed to read and understand the Financial Statements and how this links to everyday operations in your organisation. It covers the purpose and structure of the Income Statement and the Statement of Financial Position, as well as the terminology and jargon associated with them, before looking at the ratios that can be performed on them.
It then moves on to look at key aspects of financial accounting and the impact of decisions on business results; the knowledge gained will improve confidence during important financial discussions. It covers the difference between capital expenditure and operating expenditure, how to perform cost appraisals, the calculation of depreciation and the importance of working capital.
Who is this course for?
This course is a good starting point suitable for non-financial managers or anyone moving into management who needs to understand financial information they are being presented with and understand the language of finance so that a better understanding of the impact of key business decisions on the financial results can be gained.