ACCOUNTING FUNDAMENTALS WITH EXCEL
- To be able to interpret and analyze the three financial statements to assess the financial position of the organization
- You will know how to create three financial statements
- Proficient in analyzing financial position of the company
- Understand working capital management, inventory valuation and breakeven analysis
- Rich learning experience through case studies
WHO SHOULD ATTEND
This course is aimed at those who wish to explore the more advanced aspects of Accounting Fundamentals to build a career in the below areas:
- Section 1 - Basics of Accounting & Double Entry Book Keeping
The objective of this section is to understand basics of accounting & accounting principles. The participant will learn the construction of journal ledger and trial balance. The three financial statements namely balance sheet, profit and loss and cash flow statements are discussed in brief.
Basics of Accounting
- What is accounting
- Why are financial reports important
- Key Accounting Principles
- Construction of journal, ledger and trial balance
- Broad purpose of financial statements
- International Standards for Accounting
- Section 2 - Understanding Financial Statements and Analysis
This section further builds on the three financial statements. It focuses on explaining components of all the financial statements and their meaning in detail. The participant will also learn how to interpret the three financial statements.
Balance Sheet Basics
- Purpose of B/S
- Assets- non current , current
- Equity and Balance Sheet
- B/S Example- real world case study- reading and interpretation
- Purpose of Income Statement
- Basic Components of P&L
- Meaning of several items on P&L
- Read and interpret real-world income statements
Cash Flow Statements
- Purpose of Income Statement
- Basic Components of cash Flow statement
- Meaning of several items on cash flow statements
- Construction of CFS using Excel
- Analysis and real world case study on construction and analysis of CFS
- Section 3 - Working Capital, Inventory and Ratio Analysis
This section is focused on explaining how the three statements are linked together. The participant will learn in detail how to do ratio analysis and du pont analysis (three steps and five step). Basic concepts of inventory valuation, working capital management and breakeven analysis are also covered.
Basics of Working Capital
- Introduction to Working Capital
- Factors determining working capital requirements
- Working capital estimation & analysis
- Financing of working capital
Inventory Valuation Techniques
- Weighted Average Cost
Ratio analysis & DuPont Analysis
- Liquidity ratios which will include current ratio, acid test, quick ratio etc.
- Activity Ratios which will include account receivable turnover, inventory turnover, total asset turnover etc.
- Coverage Ratios which will include debt service coverage ratio, interest coverage ratio, debt to equity etc.
- Profitability Ratios : Return on sales, return on assets, return on shareholder’s equity
- Market Ratio: earnings per share, book value per share, price to equity etc.
- Three step and five step Du Pont analysis
- Section 4 - Advanced Accounting Topics
This section covers in-depth aspects of advanced analysis of key Accounting concepts as well as International Accounting standards and Financial Reporting. We also implement a detailed case study in Excel.
Advanced Analysis of Key elements
- Analysis of Depreciation and Impairment
- Deferred and Prepaid Taxes and Implications
- Long term and short term Liabilities
- Financial Leases
- Inventory Analysis
- International Accounting Standards
- US GAAP
- Accounting for Derivatives and Hedging
DETAILED CASE STUDY AND EXCEL IMPLEMENTATION
Let us bring our classes to you! Our in-house training are ideal for groups of 10 or more people. We can provide Off-the-shelf training in the form of our classic courses, or we can provide bespoke training, tailored to your organisational goals and objectives. Please contact us for further details