23 – Costs + What-if Models

In this module we begin by considering how to allocate overheads (essential for pricing) before moving onto cost-volume-profit analysis, a simple form of what-if analysis.

In the second section, we build a what-if sensitivity model allowing you to see how changes in the way you trade affect the financial statements.

24 – Sensitivity Models

We go a bit deeper into sensitivity models – what are the watch-outs and how to make your assumptions explicit (essential if you are to improve your decision-making).

22 – Accounting Issues & Budgets

The accounts can provide a very distorted picture of a business. Accounting as a system was designed to record transactions. Providing there is a transaction, the system works relatively smoothly. But there are difficulties inherent in a historical-cost, transaction-based system (eg undervaluing intangibles).

21 – Key Financial Indicators – KFIs

KFIs provide you with a range of perspectives on how your business is performing: profitability, liquidity and financial status. We will look at how they are calculated, what they mean, how to manage them and, critically, their shortcomings.

20 – Balance Sheet

The components of the Balance Sheet – or more properly, the Statement of Financial Position – assets (fixed and current), liabilities (current and long-term) and owners’ equity. Unlocking the jargon and helping you to understand what the figures mean.

19 – Profit + Cashflow

Exploring the components of the Income Statement – or, more commonly referred to as, the Profit & Loss account – including, revenue recognition (when does a sale count as a sale), cost of sales, OpEx, EBITDA and depreciation. We will also consider cash flow and why ‘Cash is King!