Welcome to the financial management module. Let us start with an introduction. Like the other modules on this platform, we started with the ambition to make useful information for social entrepreneurs, and social entrepreneurial students, widely available. The information on financial management is compiled from several courses and handbooks on financial management, and we did our best to stick to the basics and not bore you with details.
This module is structured according to the three basic financial documents: the balance sheet, the profit & loss statement and the cashflow statement. For each of these documents we’ll give a practical definition, and an overview of the content as well as the principles ruling each of this documents. The aim is that you will know what you can find (and what not) in each of this documents and how they will support you to evaluate and navigate your business. After finishing this module you will understand that financial data are the logical indicators whereon you can follow up on your business model. You don’t need to become a financial expert, knowing the basics is enough.
Key concepts covered include
- You will understand why the basics of financial management are key for an entrepreneur
- You will get to know the three basic financial documents
- You will understand how they relate to each other
- You will recognize the financial indicators
The module includes the following learning objectives
- Being able to read a balance sheet
- Recognise a healthy balance sheet
- Know what ratios your bank and other fund providers consider important
- Follow up on your costs and income and calculate the result
- Calculate and monitor your profit margin
- Being able to calculate and monitor your cash flow
- Knowing which information you can get from the balance sheet, profit and loss statement and cash flow statement
We wish you good luck with your financial literacy! We hope you enjoy the learning.