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Finance Fundamentals
Financial Plan: A Guide on Financial Statements
Learn how to create accurate income statements and cash flow statements. Develop a solid cash flow strategy for your business and when speaking to investors.
Created By :
27m
English
Last updated :
4/2024
Serial Entrepreneur,
International Speaker,
Founder of EntrepreneurNOW Network,
38,030 Students Globally
39 Courses
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Financial Plan: A Must-Have Tool for Your Business
Financial Plan: The Fundamentals for Your Business
Financial Plan: A Detailed Guide to Revenue Models
Financial Plan: A Guide on Staffing and Expense Models
What you'll learn
Overview
The income statement, also known as the profit and loss statement (P&L), is the financial report that investors pay the most attention to. This is for good reason - it summarizes all your projections and calculations, providing a numerical narrative of how your business generates revenue. This course aims to help you consolidate all the necessary information to create an accurate and persuasive P&L.
Startup success heavily relies on cash management, as 8 out of 10 business failures can be attributed to poor cash flow. It is crucial to track the inflow and outflow of cash to stay on track. The cash flow statement serves as a continuous record of income, investments, and expenses. It enables you to make necessary adjustments to your activities and predict the amount of investment required until your business achieves positive cash flow.
Furthermore, this course not only covers these essential calculations but also delves into strategies for effectively managing cash flow and establishing realistic projections. By utilizing the provided spreadsheet and accessing on-demand expertise, you will be able to develop a solid cash flow strategy that sets your company on a path towards growth.
To gain a deeper understanding of creating a strong financial plan, you can explore additional courses within this comprehensive series:
Understanding the Income Statement
The income statement offers a comprehensive overview of your business's financial health. This statement is widely recognized within the industry, making it easily comprehensible to both banks and investors. Its purpose is to provide insights into the viability of your business through various factors such as forecast accuracy, expenditure levels, product, sales and marketing costs, and staffing projections.
If you lack the proficiency to interpret and convey the significance of each figure to potential investors, it is crucial that you watch this informative lesson. I will guide you through the entire income statement, dissecting each line and explaining its implications. Your income statement weaves a narrative, and it is imperative for you to comprehend and articulate that narrative to key stakeholders and investors.
Income Statement Walk-Through
In this explanation, we will go through the different sections of an income statement to provide a comprehensive understanding of how each area influences your business. We will navigate through the Financial Models Worksheet, focusing on the Income Statement, which includes the Profit and Loss (P&L) statement and the cash flow statements. While there is no need for you to input any information here, it is crucial to thoroughly review these statements. I will guide you on how to analyze the fields in these statements, empowering you to confidently evaluate your business's financials independently.
Cash Flow Statement
Having a grasp of cash flow is crucial for the survival of any business. This section offers valuable insights into effectively managing your monthly cash flow and comprehending your maximum negative cash flow, enabling you to steer clear of potential pitfalls that may result in avoidable bankruptcy.
Additionally, I will guide you through the process of creating various scenarios for your financial plan, which will prove beneficial when discussing matters with investors and ensure a more precise financial forecast.
Financial Model: Worksheets
The course provides a comprehensive financial model that enables you to generate an income statement and cash flow statement for your business. Additionally, we have included a set of sample worksheets that are mentioned in the course.
Kindly note that the password to unprotect the spreadsheets, allowing you to modify formulas and add rows, is "Success".
Who this course is for
Requirements
Testimonials
Course Content
4 Sections 13 Lectures 27m total length
Subjects of Expertise
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