This course is intended to help you to become more familar with financial terms, statements and the key ratios you need to know to accelerate your businesses growth and success.
So many owners focus on their gut, without really knowing what is going on in their business. The only way to make good decisions is to have good information.
Understanding the basics of finance and how this understanding can improve critical business decision making
Understanding the terms:
Investments, financing, cash management, stakeholders.
Introduction to the financial package
Understand the importance of the income statement, and how you can use it to your advantage
What is the proper way to track what you have left at the end of the year to invest in the business? This is called the Statement of Retained Earnings
Assess the health of your business.
The balance sheet pulls together the Income Statement and Retained Earnings to provide a picture of the health of your business
What is the movement of cash through the business? How is it tracked?
This is answered by the Statement of Cash Flows
What are the financial ratios that tell you how your business is performing?
Will our business be able to handle blips in the market?
Can we take advantage of low cost inventory?
Can we invest in new equipment?
The Liquidity Ratio can help provide answers and insights into these questions
Operating ratios help to determine the decisions that involve spending money to sustain your business, and to help it grow.