Understanding Finance - a package of 10 Knowledge Bits

This course will work through, step-by-step, each of the most significant transactions that most businesses make and explain how these are reflected through accounting in the financial statements. These transactions include fixed/noncurrent assets, investments, sales and trade receivables/debtors, purchases and t rade payables/creditors, accruals and prepayments.

Budget is typically agreed before the start of the financial period which it covers. As the period passes, the actual performance is then compared to the budget as a benchmark. To gain more detail, variance analysis is used which is covered in the course including topics such as standard cost, materials and labour cost and usage.

Most organisations undertake budgeting and this module will cover what a budget is and why they are used with a description of a typical budgeting process. The module also covers some forecasting techniques such as linear regression, time series and scenario planning.

This course covers business planning in terms of what it comprises and how we might use tools and techniques to support strategic analysis. These tools include Porters value chain, Porter’s generic strategy classification and five force model along with the Ansoff matric and the Lynch expansion matrix. It also introduces risk management tools including the COSO framework, the TARA matrix and breakeven analysis.

Have you ever looked at a set of accounts and not known where to start? Accounts can seem daunting and almost appear in a foreign language! This module looks at accounts in their simplest form and aims to demystify the language of accounts. You will learn about the basics of the accounts and the elements that make up the accounts, along with the basic principles that underpin every set of accounts.

Have you ever been asked to present a business plan and not known where to start? Irrespective of your job role, business cases are a common feature of every day working life.
This course is for those who want to understand what a business plan is, and what it is used for. During this course you will look at the essential components of a credible business plan.

This course is for those who have a basic understanding of accounts but want to take a deeper dive and look at the primary financial statements in more detail. In this module you will look at the content and structure of the Profit & Loss account, the Balance Sheet and the Cashflow statement and the relationships between the financial statements. You will also look at other components of a published set of financial statements, including the Directors Report, Corporate Governance and Directors Remuneration.

Do you hear the word ‘budget’ and groan in dismay? Do you dread the budget cycle? If the answer is yes to either of these questions then this is a module for you. Wherever you work and whatever your role, you have an impact on and are impacted by budgets. In this module you will learn about the different types of budget and the different ways to budget for example the fixed and flexible approach to budgeting.

Do you struggle to understand the different type of costs for example the difference between fixed and variable costs, semi variable and variable costs? This module looks at costs in their simplest form and aims to demystify the language of costs and costing. You will learn about the different types of costs and cost behaviour, the uses and principles of standard costing and the principles of break-even analysis

The course goes back to the fundamentals of what profit is and introduces some other measures including EBITDA (Earnings before interest, tax, depreciation and amortisation). It goes through a practical application of ratio analysis using real life examples to interpret the financial position and performance of a company. Ratios used include profit margins, dividend yield, dividend cover, earnings per share. The module ends with an acknowledgement of some of the limitations of ratio analysis such as sector dynamics, size of entity and different accounting polices.