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Did you see the title of this course and think, "Big, scary financial words!" Have no fear. In this program, we're going to break down benchmarking, ratios, comparisons, and trends so that they're easy to understand. We'll discuss what each of these terms mean, how they work together on a balance sheet, and what they mean to the financial health of your company.
The balance sheet is one of the three components that make up a company's financial report. It indicates a company's assets, liabilities, and owner's equity. It's used to help a company evaluate its financial health and to communicate that information to interested parties. In this course, we'll go over the parts of a balance sheet, how to create one, and how to ensure that your balance sheet is "balanced."
We know that assets and liabilities are two important sections that make up a balance sheet. But what exactly constitutes an asset? Or a liability? There are many things that may or may not qualify, so this course is designed to help you determine what should and should not be included. We'll discuss the two categories of assets and two categories of liabilities.
An inventory budget is an estimate of how much money or capital a business needs to purchase inventory. In this program, we'll talk about how to create this type of budget. We'll discuss data analysis and the types of data used for inventory budgeting. We'll go over sales forecasts, bottom-up budgeting, vendor analysis, and internal inventory controls. With an in-depth analysis of these key factors, you can create an accurate budget that helps your company reach its goals.
Discounts on products or services are a part of every business. Perhaps you're running a promotion to increase sales, or lowering prices to move overstock off the shelves. Whatever the case, it's important that you understand how discounts can impact your budget. In this course, we'll take a look at planning and writing discounts into your budget and looking at your company's history of discount patterns. We'll also discuss friends and family discounts, reward programs, and wholesale discounts.
Every employee with every company impacts the budget of the business they work for, either directly or indirectly. Whether you're an accountant, supervisor, janitor, marketing intern, or anything in between, understanding your company's budgetary expectations and goals will help you be a better employee. In this course, we'll go over the basics of budgeting, including the different types, common timelines, necessary details, and objectives.
It's important to understand which types of budget will work best for your purposes. This course takes a look at the different types of budgets that are used depending on the strategy. We'll go over the most common types of business budgets: Zero-based, Top-Down, Bottom-Up, Value Proposition, and Incremental. Each budgeting method has its pros and cons, and understanding the strengths and weaknesses of each one can help you determine which is the most appropriate for your company at any given stage.
Expense budgeting plays an integral part in ensuring that a company can turn revenue into profit, while still being able to pay the costs associated with running the business. In this program, we'll talk about what budgeting expenses means and why it's important. We'll also discuss the difference between fixed and variable costs, and what costs may fall into both categories. Having a solid understanding of these terms will help you to properly estimate total expenses in a given budgetary period and aid in better profit generation.
Budgeting revenue is often where business owners start. Revenue is what provides the money to pay for expenses incurred by running a company, so it makes sense. Budgeting for revenue is also an estimate and requires careful attention to data to ensure that your estimate is reasonable and accurate. In this course, we'll talk about how to budget revenue correctly. We'll discuss the impact of past, present, and future trends. We'll also go over two important considerations: capacity and supplies. Having this knowledge will allow you to accurately and reasonably plan a revenue budget.
You've determined your budget, distributed it to the proper recipients, and now you're carrying out the budget plan. The next and perhaps most vital part of the budgeting process is budget reporting. Not sure what budget reporting is? That's okay because that's what this course is all about. We'll define budget reporting and talk about two important terms: favorable and unfavorable variances. Budgets aren't intended to be inflexible. They should evolve with business, and budget reporting is the tool that allows companies to adapt and grow.
Managing receivables is another important aspect when it comes to cash flow management. This refers to the collection of monies owed to the business, and is essentially the opposite of payables. A receivable is an asset on the balance sheet that represents the amount of product sold on credit to a customer. In this program, we'll talk about issuing credit, and setting up effective collection and billing systems.
Cash flow statements paint a picture of how money is flowing through a company, both in and out, from one period of time to another. They can be difficult to follow, but hold a wealth of valuable financial information. In this course, we'll go over how to interpret a cash flow statement. We'll discuss the four main sections that make it up, go over some key things to look for, and talk about the valuable analytics that come from this important statement.
A payable is money that your company owes to someone. When you receive a bill from a company that has provided you with a service, that money owed is considered an account payable. Managing these accounts is another important part of cash flow management, so that's what we'll be covering in this short program. We'll discuss prioritizing payables and go over some strategies for managing them.
Cash flow is one of the most important indicators of corporate financial health. It paints a picture of how a company receives, pays, and invests money. In this program, we'll talk about the basics of cash flow: what it is and why it matters. We'll go over cash flow statements, inflow, and outflow. Applying these cash flow management basics will help you better understand and develop your own company's finances.
Anyone looking to pour money into a company is looking for a good return on their investment. In this program, we'll go over three metrics a company can focus on to attract investors: liquidity, growth, and return on assets. We'll take a look at what each of these metrics mean and what you can do to positively impact those numbers to help your business become a more desirable investment.
With every business comes the cost of running it. If you have too many expenses, even if you're bringing in revenue, you won't end up with a net profit. That's why evaluating costs is so vital to the success of your company. In this program, we'll discuss the comprehensive information you'll need to gather. We'll go over how to evaluate that data to determine which costs are essential and which ones need to be reduced or eliminated. We'll also go over some helpful strategies to reduce your costs.
Comparing your company's financial statements against other companies can benefit you in many ways. This information can help you develop your own company's goals or show you how you're progressing against industry standards. Whatever your reasons, it's important to know the best methods to compare companies. In this course, we'll discuss different types of ratio analyses that allow you to make those comparisons.
Productivity indicates a company is using its resources well. This is an area that should be examined closely when analyzing a company. Revenue ratios are a good metric of productivity and efficiency. Metrics may vary from company to company, but the mathematics are simple once you determine which ratios need to be analyzed. In this program, we'll look at four common revenue ratios: sales per customer, sales per employee, sales per cash register, and sales per unit of time.
The cost of goods sold ratio and the gross margin ratio are two very helpful indicators of a company's efficiency. They provide valuable information that can reveal trends, help you budget, and help you calculate product markup. In this program, we'll talk about these two important financial ratios. We'll discuss what they are, how to calculate them, and what they mean for your business.
Every business has costs that are necessary to keep the company running. To stay financially healthy, you must carefully balance these expenditures with the income coming in. There are two kinds of expenditures that affect financial goals: revenue expenditures and capital expenditures. In this program, we take a deeper look at what these are. We'll provide some common examples of these expenditures and discuss their financial impact on a company.
You're hopefully making money from your products or services, but have you thought about other potential income streams to help your company achieve its financial goals? In this course, we take a more in-depth look at income and the various ways that companies can bring in revenue besides simply selling their products and services. We'll talk about calculating net income and go over the most common types of income streams.
We've gone over some various ways to analyze a company's financials, but a good analyst doesn't stop there. In this program, we'll cover four more ratios to evaluate whether or not a company is on track to hit their financial goals. We'll discuss revenue growth, profitability, operating cost breakdown, and return on assets. We'll talk about benchmarking and how to compare a company's performance to itself or other businesses or categories. We'll also go over trends and what you should be looking out for.
The success of a business lies in balance income and expenditures. Without expenditures, a business can't expand and grow. But without income, a business can't manage day-to-day operations or pay its employees. So in this program, we're going to talk about the basics of what income and expenditures are and how they affect a company's finances. We'll also go over both revenue and capital expenditures, how they differ, and where they'll appear on a financial report.
Careful analysis and balancing of income and expenditures is key to ensuring that your organization is on track to achieve its financial objectives. That's what this course is designed to help you with. We'll discuss the strategy involved in determining what works best for your company. We'll talk about analyzing expenditures and some ways you can reduce them, if necessary. We'll also go over healthy ways to increase expenditures that will aid your business in the long run.
Welcome to Finance 101. Are you feeling anxious already? Did your blood pressure spike just reading that? It's okay, not all of us are numbers people. This series is designed for those who wish to dip their toes into the world of finance and are ready to learn the basics. It's important that all people have a general understanding of this broad-ranging topic, not just for career purposes, but for personal finance benefits as well. In this first course, we'll discuss all that the term "finance" encompasses, and we'll go over the various skills that come with a solid understanding of finance. We'll also talk about why and how those skills are beneficial to you.
Finance jargon is a language all its own. In order to really delve into the study of finance, you'll need to know and understand some important terms. This course will cover some common terminology including assets and liabilities, expenses and cash flow, capital gains and losses, ROI, and more. These courses will give you a solid foundation of knowledge as you move forward in your study of finance, helping you to comprehend more complex financial concepts.
As a whole, a company's financial report provides a comprehensive look at their financial health. It's typically reviewed and may be shared with current and potential investors, government entities, and others who have a financial stake in the company. It lists every single transaction a business takes part in throughout a given period of time, including loan payments, purchases, and sales. This program will help you understand the main resources and documents needed for a financial report.
Businesses use accounting to create financial statements and analyze the contents of those statements to keep track of their finances. In order for that information to be meaningful and represent companies fairly across the board, they all have to play by the same set of rules. Those principles are what we'll be talking about in this course. The principles of accounting include the various standards used throughout the world and why and how they differ. We'll discuss the U.S. standard, in particular, and some of the most important principles within it. These principles aim to make financial reporting useful to both investors and creditors, as well as those involved in making financial decisions and improving company performance.
Fraud is a biggie in the financial world. It can affect companies of every size, so one of the biggest concerns for any company should be the avoidance of fraud. Understanding what constitutes fraud can help make sure you have procedures in place to avoid it. In this program, we'll be discussing what fraud is, why it happens, and what can be done to prevent it.
When a company tracks its income and expenses, the method it uses is called its "basis of accounting." The two most commonly used methods are called "cash basis" and "accrual basis." In this course, we'll talk about what these two methods are, how they differ, and the pros and cons of each.
Accounting jargon is a language all its own. If you're not familiar with the terminology, having an accounting-based conversation is virtually impossible. In this program, we'll help you learn to translate common financial terms so you can feel more comfortable interpreting and even engaging in corporate finance discussions. We'll go over four useful terms to give you a solid foundation for understanding and discussing company finances.
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