Understanding Your Balance Sheet

3 hour workshop

Overview

Cash shows how solvent the company is, the profit and loss shows how effectively the company has performed over the period. The balance sheet indicates what the company is worth.

This course will show how the balance sheet is a snapshot in time and will move the next time there is a transaction. 

Delegates will be given an insight into fixed assets, current assets – cash, stock and trade debtors, current liabilities – trade creditors, short term loans, and shareholder equity. 

The course will show how important information can be found in the balance sheet such as the ratio of long term loans to shareholder equity, the value of current assets in relation to the value of current liabilities. 

This course can be taken on its own or as one in a group of three hour courses that includes Key Concepts in FinanceUnderstanding your P&LUnderstanding Cash Flow and Understanding Working Capital.

Key Content

  • Fixed assets and depreciation
  • Trade debtors and creditors
  • Cash and stock
  • Working capital movements
  • Balance sheets always balance

Audience

The course is designed for business owners and managers who have no formal financial training but want to understand their balance sheet and how their day to day activities influence cash, trade debtors and trade creditors. The course will introduce concepts such as working capital, gearing and return on capital employed.

Course Objectives

Course delegates will be able to:

  • Understand the basic principles of the accounting equation assets = liabilities + equity 
  • Understand what is happening to the value of the business 
  • Understand how their decisions influence the balance sheet and why this matters 

Course Requirements

Delegates on this course do not require any qualifications or accounting knowledge. It would help the delegates understanding if they have some involvement with finances and financial information.

Contact Details

Contact Bridget on bridget@bh-financial-tuition.co.uk or 07795 463 202

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Understanding your Balance Sheet Understanding your Balance Sheet (3141 KB)