Free Reading Annual Accounts course
To really know how a company is performing, you need to interpret the figures correctly, and the annual accounts in particular. To the layperson, a set of annual accounts contains a bewildering number of columns, figures and terms. It is a matter of searching for the key data and knowing how to read it.
Important decisions often have to be made on the basis of the annual figures, so it is essential to understand what the annual accounts say and what that means for the company.
That is why Learnit has developed the introductory Reading Financial Statements course, which goes into the various aspects in more depth. In this course you are given an explanation of the basic concepts and you learn how to read the figures.
Producing annual accounts is of the utmost importance for every company. Not only is the tax authority interested in the company's figures, but for the people who work with them it is essential to know how the company is doing. The annual accounts can also be used to draw up a (financial) plan for the coming year. The figures shown in the annual accounts determine the course, the expenditure and the investments, and make clear whether the company is successful or whether adjustments need to be made.
The current position of debts and assets is shown in the annual accounts, as are all accounting matters. In fact, bookkeeping is required in order to produce annual accounts. And bookkeeping starts with a general ledger. The general ledger has two accounts: the balance sheet and the profit and loss account. The company's bookkeeper maintains the general ledger and, at medium-sized and large companies, the accountant audits it. Small companies often have their bookkeeping handled by an external administration agency or consultant.
This free course can be a great help if you want to refresh your existing knowledge, but also if you know nothing about the subject at all.
Learnit offers this online Reading Annual Accounts course free of charge as downloadable PDF. Of course, you can also take a more comprehensive Reading financial statements follow.
