This unit introduces core financial-management concepts for small businesses, including profit and loss, balance-sheet relationships, cash-flow sources, liquidity and solvency measures, budgeting, taxation, capital, internal controls, and valuation basics. Students will develop the foundational analytical and reporting skills needed to interpret financial statements, build simple budgets and profit models, and assess how taxes, legal form, and capital choices affect business outcomes.
Learning Objectives
- Analyze profit and loss and balance sheet accounts to reconcile profit versus cash flow and explain how transactions flow between financial statements
- Apply liquidity, solvency, and cash-flow measurement tools (e.g., current ratio, quick ratio, cash flow forecasts, debt-to-equity) to evaluate small-business financial health and recommend corrective actions
- Demonstrate budgeting and profit-modeling skills by constructing an operating budget and projecting profit before income tax for multiple business scenarios
- Evaluate the impacts of business legal structure, income taxation, sources of capital, internal controls, and basic valuation/termination considerations on small-business financial planning and decisions
Curriculum
- 1 Section
- 27 Lessons
- 30 hours
Expand all sectionsCollapse all sections
- Unit 1 — Foundations of Small Business Finance27
- 1.1Identifying Financial Management Functions20 mins
- 1.2Getting Intimate with Your P&L (Profit and Loss) Report20 mins
- 1.3Sorting Out Your Sources of Cash20 mins
- 1.4Liquidity and Business Solvency20 mins
- 1.5Recognizing the Need for Controls20 mins
- 1.6Getting in the Right Frame of Mind20 mins
- 1.7Deciding Where the Budgeting Process Starts20 mins
- 1.8Introducing the Profit Model20 mins
- 1.9Thinking about Business Taxes20 mins
- 1.10Getting the Scoop on Capital20 mins
- 1.11Connecting the P&L and Balance Sheet20 mins
- 1.12Comparing the Financial Statements of Service and Product Businesses20 mins
- 1.13Setting the Stage20 mins
- 1.14Why You Need Business Valuations20 mins
- 1.15Looking into Business Terminations20 mins
- 1.16Remember That Planning Counts20 mins
- 1.17Understand Profit Mechanics20 mins
- 1.18System Requirements20 mins
- 1.19Tuning In to the Communication Styles of Financial Statements20 mins
- 1.20Measuring and Reporting Profit and Loss20 mins
- 1.21Avoiding Confusion Between Profit and Its Cash Flow20 mins
- 1.22Business Solvency Measurements Tools20 mins
- 1.23Clarifying Terminology20 mins
- 1.24Getting Down to Business20 mins
- 1.25Honing in on Budgeting Tools20 mins
- 1.26Stopping at Profit Before Income Tax20 mins
- 1.27Coming to Terms with Income Taxation and the Business Legal Structure20 mins
Instructor
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