Understanding Company Accounts

The first of a series of three company accounts courses providing a solid understanding of the fundamentals of company accounts.

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This intensive course introduces delegates to the contents of financial statements, their meaning and uses. It is the first in the series of three company accounts courses and provides a solid grounding of knowledge, essential before delegates can progress to analysing the information in company accounts. It is a highly practical course and delegates will prepare simple financial statements themselves to reinforce their learning.

Other courses available in this series are:

Analysing Company Accounts

Interpretation of Company Accounts 

You will learn to:

  • Understand the technical ‘jargon’ of company accounts.
  • Read and understand a set of company accounts.
  • Assess the effects of business activity on the balance sheet.

Course Outline:

The Financial Model

  • Understand the basic business model
  • What do we mean by capital? How is it invested in the business?
  • What every businessman wants to know: how am I doing? Have I got the cash to afford it?
  • How the financial statements provide the answers
  • Key fundamental concepts that accountants adhere to

The Profit and Loss Account

  • The structure of the profit and loss account; the information it contains
  • Understand what we can learn from the profit and loss account
  • Understanding the impact of depreciation
  • Case study example and real world formats

Balance Sheet

  • The anatomy of the balance sheet
  • Getting to grips with the terminology
  • Historic cost and going concern principles
  • Recognising categories of fixed and current assets
  • How liabilities are categorised
  • Understand the types of capital employed in the business and how they are used to finance assets
  • Understanding what the balance sheet can tell us
  • Case study example and real world formats

Cash Flow Statements 

  • A brief introduction to the cash flow statement
  • The importance of cash to a business
  • The distinction between cash and profit
  • Case study: preparing a cash flow statement
  • Understanding working capital

envision training

£ 579.00 ex.vat

Data sheet

Course Duration 1 Day
Location London