Financial Accounting Made Fun: Eliminating Your Fears from edX

Are financial statements a mystery to you? Do all those terms and metrics make your head spin? Do you avoid conversations with your finance leaders because you are not confident of your finance ability?

Having a solid understanding of financial terms, statements and metrics is critical to becoming a successful entrepreneur or manager. In this finance course, you will learn how to interpret and use the information contained in financial statements to make key operating decisions, evaluate business performance, and create forecasts of profits and cash flow.

This course introduces you to the form, content and definitions included in the primary financial statements: income statement, balance sheet, and cash flow statement. You will learn how to use this information to make key operating decisions, such as how to balance growth with cash constraints. You will learn how to use ratios to diagnose a company's financial health and apply these concepts and tools to evaluate a company of your own choosing.

Eliminate your fear of accounting! Financial accounting can be fun once the barriers to learning are broken down. Through a series of learning scenarios that take you through the creation of a simple business, you will become comfortable with basic accounting tools and concepts that you need to more effectively manage your business. By the end of the course, you will become a much more confident user of financial information and will be able to effectively engage with your finance leaders.

This course is part of the Business Principles and Entrepreneurial Thought XSeries.

What's inside

Learning objectives

How primary financial statements are constructed and what types of information is captured in each statement
How cash and profits can differ and how to use that information to effectively manage growth

How to calculate key performance ratios and use those metrics to evaluate the performance of your business
How to create a financial forecast that you can use to better manage your business and to present to potential investors and creditors

How primary financial statements are constructed and what types of information is captured in each statement
How cash and profits can differ and how to use that information to effectively manage growth
How to calculate key performance ratios and use those metrics to evaluate the performance of your business
How to create a financial forecast that you can use to better manage your business and to present to potential investors and creditors

Syllabus

Week 1:Balance Sheet and Transaction Analysis

Why do we need financial statements? What purpose do they serve?

What kind of information is contained in the balance sheet?

How are day-to-day operating decisions captured and recorded?

How are start-up activities (e.g., raising capital, investing in your business) reflected in the financial statements?

Week 2:Income Statement and Cash Flows

How do sales and operating expenses impact earnings and cash flow?

What are the early warning signs that my business may run out of cash?

Is all growth the same? What is the difference between good growth and bad growth?

Week 3:Ratio Analysis

What are the key ratios for evaluating profitability, return on investment, and liquidity or solvency?

How well is my business performing? How are my competitors doing?

How do different strategies and business models reveal themselves in the financial statements?

Week 4:Forecasting

How do I translate my growth plans into a forecast of profits and cash flow?

How can a forecast help me manage my business more effectively?

What do potential investors or creditors look for in a forecast?

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Guides learners through key financial terms, statements, and metrics to boost financial literacy

Well-structured curriculum with clear learning objectives: understand financial statements, analyze financial performance, and create financial forecasts

Features practical, real-world examples and scenarios to reinforce understanding and develop problem-solving skills

Suitable for a wide audience seeking to enhance their financial knowledge and decision-making abilities

Taught by instructors with expertise in financial accounting, providing credibility to the course content

Assignments may require access to specific software or financial data, which could pose challenges for some learners

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Financial Accounting Made Fun: Eliminating Your Fears with these activities:

Find a Mentor

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Finding a mentor can help you build a strong foundation in understanding how to use financial data to make informed decisions, a key necessity to becoming a successful entrepreneur or manager.

Browse courses on Financial Statements

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Identify the skills and knowledge you want to develop
Research potential mentors
Reach out to potential mentors

Income Statement Analysis

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Income statement analysis will help you build a strong foundation in understanding how to analyze financial data, a key necessity to becoming a successful entrepreneur or manager.

Browse courses on Income Statement

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Review the format and contents of an income statement
Identify the different types of revenues, expenses, and profits
Calculate basic income statement ratios to assess financial performance
Write a brief report summarizing your findings

Financial Statement Analysis Using Excel

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Financial statement analysis using Excel will help you build a strong foundation in understanding how to use financial data to make informed decisions, a key necessity to becoming a successful entrepreneur or manager.

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Review the basics of Excel
Learn how to use Excel to analyze financial statements
Complete a tutorial on financial statement analysis using Excel

Six other activities

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Financial Intelligence for Entrepreneurs

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Reading 'Financial Intelligence for Entrepreneurs' will help you build a strong foundation in understanding how to analyze financial data, a key necessity to becoming a successful entrepreneur or manager.

View Financial Intelligence for Entrepreneurs on Amazon

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Read the book
Summarize the key points of the book
Apply the concepts from the book to your own business

Balance Sheet Analysis

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Balance sheet analysis will help you build a strong foundation in understanding how to analyze financial data, a key necessity to becoming a successful entrepreneur or manager.

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Review the format and contents of a balance sheet
Identify the different types of assets, liabilities, and equity
Calculate basic balance sheet ratios to assess financial health
Write a brief report summarizing your findings

Cash Flow Statement Analysis

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Cash flow statement analysis will help you build a strong foundation in understanding how to analyze financial data, a key necessity to becoming a successful entrepreneur or manager.

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Review the format and contents of a cash flow statement
Identify the different types of cash inflows and outflows
Calculate basic cash flow ratios to assess financial health
Write a brief report summarizing your findings

Ratio Analysis

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Ratio analysis will help you build a strong foundation in understanding how to analyze financial data, a key necessity to becoming a successful entrepreneur or manager.

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Review the different types of financial ratios
Calculate financial ratios to assess financial performance and health
Interpret the results of your ratio analysis
Write a brief report summarizing your findings
Use ratios to compare different companies

Financial Forecast

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Creating a financial forecast will help you build a strong foundation in understanding how to use financial data to make informed decisions, a key necessity to becoming a successful entrepreneur or manager.

Browse courses on Financial Statements

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Review the different types of financial forecasts
Identify the assumptions and data you will need to create a financial forecast
Create a financial forecast using a spreadsheet or financial modeling software
Write a brief report summarizing your findings

Financial Modeling

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Financial modeling will help you build a strong foundation in understanding how to use financial data to make informed decisions, a key necessity to becoming a successful entrepreneur or manager.

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Review the different types of financial models
Identify the assumptions and data you will need to create a financial model
Create a financial model using a spreadsheet or financial modeling software
Write a brief report summarizing your findings

Career center

Learners who complete Financial Accounting Made Fun: Eliminating Your Fears will develop knowledge and skills that may be useful to these careers:

Controller

Controllers are responsible for the day-to-day management of the accounting and financial reporting functions of a business. They oversee the preparation of financial statements, manage the accounting staff, and develop accounting policies and procedures. Financial Accounting Made Fun: Eliminating Your Fears will provide you with the skills and knowledge needed to be successful in this role, including how to interpret financial statements and manage the accounting function.

See salaries and explore the career path for Controller

Chief Financial Officer

Chief Financial Officers are responsible for the financial operations of a business. They oversee the accounting, budgeting, and financial planning functions. Financial Accounting Made Fun: Eliminating Your Fears will provide you with the skills and knowledge needed to be successful in this role, including how to interpret financial statements and make strategic financial decisions.

See salaries and explore the career path for Chief Financial Officer

Investment Banker

Investment Bankers advise businesses and governments on mergers, acquisitions, and other financial transactions. They analyze financial data, develop financial models, and make recommendations on how to raise capital and manage investments. Financial Accounting Made Fun: Eliminating Your Fears will provide you with the skills and knowledge needed to be successful in this role, including how to analyze financial statements and value businesses.

See salaries and explore the career path for Investment Banker

Financial Analyst

Financial Analysts provide guidance to businesses and individuals on investment decisions. They analyze financial data, make recommendations on how to invest money, and manage investment portfolios. This course will give you the skills and knowledge needed to be successful in this role, including how to analyze financial statements and create financial forecasts.

See salaries and explore the career path for Financial Analyst

Budget Analyst

Budget Analysts help organizations plan and manage their finances. They analyze financial data, develop budgets, and make recommendations on how to allocate resources. Financial Accounting Made Fun: Eliminating Your Fears can help you develop the skills needed to be successful in this role, including how to create financial forecasts and evaluate financial performance.

See salaries and explore the career path for Budget Analyst

Financial Planner

Financial Planners help individuals and families plan for their financial future. They analyze financial data, develop financial plans, and make recommendations on how to save, invest, and manage debt. Financial Accounting Made Fun: Eliminating Your Fears can help you develop the skills needed to be successful in this role, including how to create financial forecasts and evaluate financial performance.

See salaries and explore the career path for Financial Planner

Auditor

Auditors examine and evaluate financial records to ensure accuracy and compliance with laws and regulations. They may also provide consulting services to help businesses improve their financial operations. This course will provide you with the skills and knowledge needed to succeed as an Auditor, including how to interpret financial statements and identify potential accounting issues.

See salaries and explore the career path for Auditor

Accountant

Accountants analyze, interpret, and communicate financial data. They prepare financial statements, such as balance sheets and income statements. They also develop and implement accounting systems. Financial Accounting Made Fun: Eliminating Your Fears will help build a foundation in accounting principles and help you develop the skills needed to be successful in this role.

See salaries and explore the career path for Accountant

Quantitative Analyst

Quantitative Analysts use mathematical and statistical techniques to analyze financial data. They develop models to predict financial performance and make investment decisions. Financial Accounting Made Fun: Eliminating Your Fears will help build a foundation in accounting principles and help you develop the skills needed to be successful in this role.

See salaries and explore the career path for Quantitative Analyst

Product Manager

Product Managers are responsible for the development and marketing of products and services. They analyze market data, develop product concepts, and manage product development teams. Financial Accounting Made Fun: Eliminating Your Fears can help you develop the skills needed to be successful in this role, including how to create financial forecasts and evaluate the financial performance of products.

See salaries and explore the career path for Product Manager

Project Manager

Project Managers plan, organize, and execute projects. They are responsible for developing project plans, budgets, and schedules. Financial Accounting Made Fun: Eliminating Your Fears can help you develop the skills needed to be successful in this role, including how to create financial forecasts and manage project costs.

See salaries and explore the career path for Project Manager

Operations Manager

Operations Managers oversee the day-to-day operations of a business. They are responsible for planning, organizing, and controlling the production of goods and services. Financial Accounting Made Fun: Eliminating Your Fears can help you develop the skills needed to be successful in this role, including how to create budgets and manage cash flow.

See salaries and explore the career path for Operations Manager

Management Consultant

Management Consultants advise businesses on how to improve their operations and achieve their goals. They analyze financial data, develop strategies, and make recommendations on how to improve efficiency and profitability. Financial Accounting Made Fun: Eliminating Your Fears will help build a foundation in accounting principles and help you develop the skills needed to be successful in this role.

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Risk Manager

Risk Managers identify and assess risks that could impact a business. They develop and implement strategies to mitigate these risks. Financial Accounting Made Fun: Eliminating Your Fears can help you develop the skills needed to be successful in this role, including how to analyze financial data and identify potential risks.

See salaries and explore the career path for Risk Manager

Sales Manager

Sales Managers oversee the sales and marketing operations of a business. They are responsible for developing sales strategies, managing sales teams, and achieving sales targets. Financial Accounting Made Fun: Eliminating Your Fears can help you develop the skills needed to be successful in this role, including how to create financial forecasts and evaluate the financial performance of sales teams.

See salaries and explore the career path for Sales Manager