Financial Management
This module is structured around the three basic financial documents: the balance sheet, the profit & loss statement and the cash flow statement. For each of these documents we will provide a practical definition, and an overview of the content as well as the principles ruling each of these documents. After finishing this module you will understand that financial data and ratios are the logical indicators that you can follow when evaluating your business.
You don’t need to become a financial expert, knowing the basics is enough.
Key Concepts
There are four themes underpinning this module: (1) the basics of financial management that are key for an entrepreneur including the three basic financial documents such as (2) the balance sheet and profit and loss; (3) cash flow and how they relate to each other and (4) making use of the most important financial indicators.
Learning Outcomes
Upon completion of this module, it is expected that the learner will…
- Be able to read and recognise a healthy balance sheet.
- Know what ratios your bank and other fund providers consider important
- Follow your costs and income and calculate and monitor your profit margin
- Be able to calculate and monitor your cash flow
- Understand a balance sheet, a profit and loss statement and cash flow statement