Financial accounting is an essential tool for entrepreneurs and operational managers who have to make decisions.

Rather than learning accounting through accounting statements, you will gradually discover them through the construction and development of a business during its first 16 months of activity. Each month brings its share of new events, decisions, concepts and tools.

The pedagogical process is gradual and the appearance of concepts and tools perfectly natural. We do not produce accounting documents and indicators for themselves, but to understand the financial performance of the business.

The course consists of 5 modules.

Module 1

After creating a business by providing it with capital, you will start a simple B2C activity in order to define the concepts of sales (or revenue) and result (or profit), introduce the concept of Working Capital Requirement by expanding the B2B activity and present the rationality and the first constituent elements of the 3 accounting statements: income statement (P&L), balance sheet and cash flow statement.

Concepts: sales, profit, economies of scale, WCR (inventory, accounts receivable and accounts payable), operating cash flow, tax, dividend.

Module 2

After having accounted for a depreciation of inventories (exceptional result), you make the company grow while refining your skills in calculating WCR and forecasting accounts, together with deepening your first steps in financial analysis.

Concepts: exceptional result vs. current, financial modeling, growth vs. result vs. cash.

Module 3

You want to master your production tool and decide to invest in a manufacturing machine. After defining the economic aspects of the project, you finance it in part with debt and start operations by learning to calculate your own industrial cost prices.

Concepts: calculation of production cost, financial debts and financial expenses, investment and depreciation, EBITDA vs. operating result.

Module 4

You now decide to master your innovation processes and hire R&D engineers to develop your own products. This prepares a change of scale for the company which wants to accelerate its development.

Concepts: tangible investment vs. intangible, prepaid expense, gross cash flow vs. operating cash flow vs. free cash flow, operating vs. non-operating WCR.

Module 5

The construction of the factory is decided, but its financing goes far beyond your debt capacity. You attract new shareholders by accepting the associated dilution, and understand the strategic nature of liquidity.

Concepts: capital increase and share premium (additional paid-in capital), permanent capital, working capital and net cash, completed cash flow statement.

This course is accompanied by a spreadsheet that will help you understand and work through the exercises.

To download the spreadsheet CLICK HERE.