Balance Sheet and Profit and Loss Account

By the end of the course, learners will be able to:

• Facilitate the exchange of financial information
• Organise data processing to meet the organisation’s needs

Introduction: Preparing and understanding a balance sheet and profit and loss account

Introduction to accounting and the balance sheet

• Definition and objectives of accounting
• Structure of the balance sheet: an overview of the various sections of the balance sheet.

Distinguishing between assets and liabilities on the balance sheet

• Assets or liabilities: Definition, classification and examples
• Equity: Composition and significance.

Practical examples and analysis of the balance sheet

• Case study: Analysis of a company’s balance sheet.
• Interpreting the results: What the figures reveal about the company’s financial health.

Introduction to the Profit and Loss Account

• Structure of the profit and loss account: Overview of the different sections.
• Key components: Turnover, expenses, income, net profit.

Analysis of the Profit and Loss Account

• Analysis techniques: Methods for analysing the profit and loss account.
• Interpreting the results: What the figures reveal about the company’s performance.

Practical examples and interrelationships between the balance sheet and the income statement

• Case study: Joint analysis of a balance sheet and an income statement.
• Interpreting the interrelationships: How the two financial statements complement each other.

Further exploration: Using financial analysis tools

Financial ratios and analysis tools

• Definition and importance of financial ratios: Why they are used.
• Categories of ratios: Profitability, liquidity, solvency, indebtedness.

Profitability ratios

• Net profit margin: Calculation and interpretation.
• Return on equity (ROE): Calculation and interpretation.

Liquidity ratios

• Current and quick ratios: Calculation and interpretation.

Solvency and debt ratios

• Debt ratio: Calculation and interpretation.
• Debt coverage: Calculation and interpretation.

Practical case study: comprehensive analysis

• Applying the knowledge acquired: carrying out a comprehensive analysis of a company.
• Calculating the various ratios: profitability, liquidity, solvency, debt.

Final case study

• Analysis of a balance sheet and an income statement: Calculation of financial ratios.
• Interpretation of the results: Discussion of the implications for the company.

Review of key points: Summary of lessons learnt and best practice.

• Certification of prior learning

• All audiences

This course is aimed at directors of micro-enterprises and SMEs, business founders or buyers, operational managers, department heads, sales representatives or account managers, as well as any employee wishing to learn the basics of financial analysis.

It is also suitable for professionals who are not finance specialists but wish to better understand and interpret a company’s key financial documents (balance sheet, profit and loss account, key indicators).

It is primarily aimed at companies with fewer than 50 employees operating in sectors covered by AKTO. Funding is also available for companies with more than 50 employees. Please contact us.

• Technical prerequisites:

Suitable for beginners, but some basic knowledge of accounting is an advantage for a better understanding of the concepts.

4 to 8 trainees

• Fully classroom-based training

• Personalised course
• Group lessons

• Resource centre
• Room equipped with networked computer workstations
• Unmarked room with video projector

Positioning upstream of training entry.

Interviews, remediation with the educational referent and/or company referent during training.

Taking account of beneficiary satisfaction during and at the end of training.

Possibility of post-training support.

For beneficiaries with disabilities: possible adaptation of training and certification arrangements, support by the TH referent.

Education Nationale certified teachers, Bac +3 trainers with significant experience in adult training, professional speakers.

Trainers experienced in individualising learning.

In-course evaluations (ICE)

By the end of this training course, participants will be able to read and understand the structure of the balance sheet and profit and loss account, identify the main accounting items and extract key information about the company’s financial position and performance. This will enable them to monitor their organisation’s financial performance more effectively and communicate more efficiently with accounting and finance professionals.

Access for people with disabilities

National Education certified teachers, Bac +3 trainers with significant experience in adult training, professional speakers.

1st training session, we have no Quality indicators.