Financial Analysis for Start Ups and Small Businesses

This free practical training for entrepreneurs is aimed at startups and small businesses. The course duration is 3 hours 35 minutes.

Learning Outcomes

By the end of this course, participants will be able to:

LO1 Explain fundamental financial and accounting concepts, including assets, liabilities, capital, income, expenses, debit and credit, depreciation, amortisation, and accruals.
LO2 Identify the purpose, structure, and key components of income statements, balance sheets, and cash flow statements.
LO3 Describe the key considerations involved in preparing accurate financial statements for a start-up or small business.
LO4 Explain the principles of financial forecasting and how revenues, costs, expenses, assets, liabilities, capital, and cash flows can be forecast.
LO5 Distinguish between horizontal and vertical analysis and explain how each can be used to interpret financial statements.
LO6 Identify financial trends and changes in business performance using information contained in financial statements.
LO7 Explain the purpose of business valuation and describe discounted cash flow and other common valuation methods.

• Record and organise basic financial transactions for a start-up or small business.
• Prepare basic income statements, balance sheets, and cash flow statements.
• Use financial forecasts to support business planning and anticipate future financial needs.
• Analyse financial statements to identify trends and changes in business performance.
• Use financial information to support day-to-day business decisions.
• Apply basic valuation approaches to estimate the value of a business.
• Communicate financial information more confidently with partners, investors, lenders, and other stakeholders.

This course was produced as part of the Aga Khan Development Network’s Accelerate Prosperity initiative.

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