Understanding Financial Statements & Budgeting

Course Description

Learn to read and interpret financial statements, which are the result of recording transactions for a period of time, using GAAP (Generally Accepted Accounting Principles). Understand the various forms of communication an accountant has with the readers of the financial statements and what they mean. Apply ratios and formulas to understand where the enterprise has been, where it is going and how to help steer its direction. Learn what information to gather, who to involve, and how to assemble information into a budget, which contains the financial goals of a business. Learn how new business ventures are evaluated using break-even analysis. This is a concentrated and robust learning experience complete with extensive in-class exercises.

Participant Outcomes

Upon successful completion of this course, you will be able to:

• Understand that GAAP is the basis under which all financial information is prepared
• Analyze and evaluate information obtained from financial statements by employing various ratios and analyses
• Understand the reporting done by public accountants on financial statements
• Understand the importance of a budget and its components for existing businesses and the use of break-even analysis for new business ventures

Course Content

Topic 1

Review the components of GAAP and what they mean in the recording of transactions and the preparation of Financial Statements.

Topic 2

Review the various forms of communications issued by accountants and the assurance level given to each form.

Topic 3

Analyze the financial statements (information) to gain knowledge (history and predictability).

Topic 4

Understand the purpose of a budget, the information to be gathered for its preparation, and the relationship between the component parts.