"Many small businesses would rather face an angry barbarian horde than tackle their cash flow statement or price a new product."
~ Nicole Fende, aka "The Numbers Whisperer" | Author "How To Be A Finance Rockstar" | CFO - Aetna Philippines ~
Business finance is a term that encompasses a wide range of activities and disciplines revolving around the management of money and other valuable assets. Business finance programs in universities familiarize students with accounting methodologies, investing strategies, and effective debt management. Small business owners must have a solid understanding of the principles of finance to keep their companies profitable. Financing, simply put, is the act of bringing money into an organization. Businesses can be financed in a number of ways, each of which features its own advantages, disadvantages, and unique features. Common methods of financing a business include taking on debt and taking advantage of credit arrangements, financing through equity investment, or earning income through investment products that bear interest or increase in value.
Through examples given by successful entrepreneurs, you will learn the basics of accounting principles, key business terms, and definitions to allow you to navigate financial conversations with the knowledge that most start-up entrepreneurs lack so that you can seamlessly pursue capitalization for your new company. Through the dissecting of Financial Case Study Work, you will learn the challenges that entrepreneurs face and possible solutions to each unique case. No course on business finance would be complete without teaching on Basic Economics, so we will not disappoint. You will learn about Scarcity, the Demand, and Supply chain and how both can and will affect your business. As the mission of our online entrepreneurial education system is to help you create a lasting and successful business, this course will also spend time teaching you how to create a stellar start-up budget and financial implementation and operations strategies. You will also learn how to prepare a Profit and Loss Statement, a Cash Flow Analysis, a Balance Sheet, and Financial Projections for your company and what investors look for in these documents. Lastly, you will learn what the difference is between Accounting and Bookkeeping, why they are extremely important for the operations of your new business, how to find expert financial advice and how to hire a great CPA for your new business.
1. Module 1 - Business Finance Overview
Starting with an introductory video featuring a successful and nationally known entrepreneur who is also an author and venture capital investor, you will learn the basics of Accounting so that you can know if your business is successful or not. You will also begin to learn the difference between Accounting and Bookkeeping as well as key terms such as balance sheet, assets and liabilities, revenue generation and financial projection. Through Case Study work in Financial Management, you will learn how to solve challenges that all business owners face, such as how to attract significant equity capital to help finance your start up. Lastly you will learn the basics for Financial Literacy and its importance for entrepreneurs and your start up.
2. Module 2 - Economics
The majority of people when hearing the term Economics respond as if they've heard a dirty word and wince in pain, but to the seasoned entrepreneur, it is important to understand what Economics is and how it effects business in the country. This module will teach about scarcity, the laws of supply and demand as well as what efficiency is and it will touch on micro and macro economics. You'll get a little history as a foundation to understand how and why free enterprise exists and how it invigorates economies which ultimately enhances success for entrepreneurs and small businesses globally.
3. Module 3 - Startup Budget and Operating Expenses
All new entrepreneurs make mistakes in the beginning of their careers as small business owners. You will learn 18 of the most costly mistakes so that you can avoid them. You will learn what is and how important a start up budget is, as well as what your operating expenses should be. Through focused case study work, you will figure out your start up costs for your new business and you will gain a comprehensive understanding of the differences between fixed and variable operating costs and why cutting costs is a bad idea for small business.
4. Module 4 - Profit & Loss Statement
This module will teach you how to create and read a Profit & Loss Statement correctly. In order to make good decisions in regards to your sales and expenses for your business, understanding your P&L is a paramount monthly, quarterly, or annual task towards success as an entrepreneur. The income statement is a financial report that tells you and shareholders how the business is performing in terms of revenue and where the money is being spent. Not only will this report help you be organized but in tax season there won’t be a need to hassle over all your receipts and invoices since you already have that one report that can answer the questions to your company’s tax return.
5. Module 5 - Cash Flow Statement
Starting with a super simple, easy to understand video that outlines exactly what a cash flow statement is, this course will delve into the key financial terminology you need to know to evaluate how your business is doing. Through case study work, you will develop an understanding of why it is very important for the health and stability of your business to know how to use these statements to reconcile net income with changes in cash as well as the direct and indirect methods for operating, investing, and financing cash flows. Lastly, you will learn the basics of how to prepare your business' final annual statement of cash flows.
6. Module 6 - Balance Sheet
A balance sheet is a statement of the assets, liabilities and equity of your business. You will understand the true function, value and purpose of why we have balance sheets. This module will teach you key terms and definitions related to the financial health of your business and you will learn the driving formula that a balance sheet must always encompass. Case study work will allow you to see a practical / actual major corporation's balance sheet. You will learn what Total Assets and Total Liabilities refer to and the differences between Current and Long Term Assets juxtaposed against Current and Long Term Liabilities. Lastly we will touch on how to read a balance sheet as well as what a Classified Balance Sheet is and why it is necessary for your small business to prepare one.
7. Module 7 - Financial Projection Models and Apps
This module will guide you step by step through understanding key terms and definitions related to the financial projections of your business, which will enable you to talk with potential investors and lending institutions without being intimidated. To get an accurate financial forecast of your new small business, you need to consider historical sales data, market trends, economic statistics, and other external factors. Investors are only interested knowing if your new business will generate enough cash to repay them and fuel your incentive to succeed. Creating this set of documents to give to a potential investor or lending institution and understanding them thoroughly so as to explain them with knowledge and confidence, will be the most important task you will undertake for your business. This module will enable to to have this tool in hand and empower you to proceed with confidence when dealing with the "money people".
8. Module 8 - Accounting and Bookkeeping Basics
The terms "accounting" and "bookkeeping" are sometimes used interchangeably, as though they mean exactly the same thing. From the work in this module, you will learn that this is absolutely incorrect. You will learn that bookkeeping deals with the preservation and arrangement of records of a company, and accounting is the procedure to analyze and generate various reports of a company. Bookkeeping is the first step of maintaining a company, and accounting is the major step of a business which analyzes financial activities. Throughout this module you will learn about such terms as economic entity assumption, journal entries, general ledger entries, fiscal year, and the differences between Cash and Accrual accounting methods.
9. Module 9 - Finding Good CPAs and Expert Advice
The terms "Accounting" and "Bookkeeping" are sometimes used interchangeably, as though they mean the same thing. From the learning in this module, you will realize that this assumption is not correct. You will learn that bookkeeping deals with the preservation and arrangement of records of a company and accounting is the procedure to analyze and generate various reports of a company. Bookkeeping is the 1st step of maintaining a company and accounting is the major step a business uses to analyze its financial activities. Throughout this module you will learn about such terms as economic entity assumptions, journal entries, fiscal year, and you will learn the difference between the Cash and Accrual method of accounting.