An Introduction to Financial Intelligence
In this free online course, learn about financial intelligence and hone your skills to make better financial decisions.
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Those who are entrepreneurs, managing directors, investors, shareholders, or those who own or run a business need to understand how to manage money. Whether or not you have financial education, this course is designed to help you expand your financial intelligence. The secret to every successful business is understanding how to make money. Financial intelligence is considered a core competency for anyone in business. Suppose leaders, managers, and even employees understand financial information and how financial success is measured, such as understanding an organisation’s financial goals. In this case, they will make decisions based on an understanding of those decisions’ economic impact. This course is designed to help you understand how to read and interpret financial statements, probe into performance issues and identify the roots of these issues. It will also help you understand the impact of financial decisions and how to measure your next investment or your next financing option intelligently. You will start by learning about who uses financial information, for what purpose and where it comes from. Then you will dive into the financial accounting system and processes, accounting rules and regulations, and an explanation of internal controls and regulating agencies.
The hallmark of financial intelligence is able to pick up a financial statement, make sense of it, ask the right questions to fill in the gaps, and finally, make an informed decision. The first financial statement you will learn to analyze is the income statement. You will become confident in both vertical and horizontal analysis’ to see what has been driving a company's financial performance over several years. You will also learn how to calculate return ratios to understand a company’s performance on a deeper level. The next financial statement you will learn to analyze is the balance sheet. You will understand how to differentiate good assets from bad assets, how to determine working capital, how to manage liabilities to prevent your company from incurring too much debt, and how to understand equity. As you study equity, you will take a business valuation crash course to determine a business’s “fair value”. Finally, you will learn how to analyze a cash flow statement. The cash flow statement will help you bridge your understanding between the income statement and the balance sheet and focus on the cash impact of management’s various decisions.
You will move from studying financial accounting to management accounting. While financial accounting helps you determine what has happened in a business, management accounting enables you to determine what is happening in an industry and attributes cause and effect relationships to the results. This guideline will help you pinpoint the root of a problem and who is accountable for it. You will learn how to perform a variance analysis when the results vary from the expected results to help control costs and improve operational efficiency. You will discover how to perform a costing analysis that will help you determine the actual costs of each service or product in your company. As a part of management accounting, you will also learn how to prepare an annual budget. You will explore the different approaches to budgeting and how the budgeting process functions. Towards the end of the course, you will move away from accounting and study finance. Unlike financial accounting and management accounting, finance looks into the future. Understanding finance will help you make your next investment decision or negotiate your next financing options. You don’t need a background in finance or accounting to take this course. If you have a burning drive and desire to make better business decisions, this course is for you! So why wait! Take this free course on Financial Intelligence today.Start Course Now
Financial Accounting - Learning Outcomes
Introduction to Financial Intelligence
The Income Statement
The Balance Sheet
The Cash Flow Statement
Financial Accounting - Lesson Summary
Accounting Management and Finance
Management Accounting and Finance - Learning Outcomes
Variance and Costs Analysis
Management Accounting and Finance - Lesson Summary
Upon completion of this course you will be able to:
- Discuss the roles of shareholders and directors within a company
- Explain financial statements to evaluate performance, such as the income statement, the balance sheet, and the cash flow statement
- Compute return ratios
- Outline a financial strategy
- Analyze variance and costs analysis statements to determine underlying issues in performance
- Outline the budgeting process
- Define forecasting and zero-factor budgeting
- Discuss finance and forecasting future cash flow
All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire an official Certificate, which is a great way to share your achievement with the world. Your Alison Certificate is:
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An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning
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