A Crucial Part of Accounting - Working Capital

Getting to grips with this important area of working capital, key terms, working capital formula and key ratios
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Instructed by Kieran McSherry Business / Finance
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  • Lectures 18
  • Length 1 hour
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 1/2016 English

Course Description

This course is for you if you need to understand a key are of accounting, working capital. A key area in any business is effective working capital management.

Many business managers and owners of small business are dismayed when they learn how much money they are wasting in this crucial area.

The course looks at the working capital definition. It looks at changes in net working capital and how these can be evaluated.

If you want to learn how to improve working capital performance, and learn easily with key financial ratios than can help you monitor this area, this course is for you.

The course is set out so that it is suitable for all levels

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There are a growing number of students taking our classroom teachings who see this as the most important part of their course.

The reason is because so much money can be lost if this area is not managed well. That is why effective working capital is the cornerstone of many successful businesses.

Though simply getting to grips with what it is first is the key consideration. The course does this and starts off with the definitions and theory.

It then moves in to applying this theory to a step by step worked case study example.

By the end of the course students will :

  • know how to improve working capital and money flow
  • be able to improve a business profitability
  • spot key ways to improve working capital performance
  • very quickly calculate working capital
  • apply simple ratios to enhance business performance

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Learning Structure and Materials

  • Tailored easy to follow, step by step lectures
  • Practical case study examples
  • Easy to follow examples of financial ratios
  • Learning at your own pace, in your own time

-------------------------------------------------------------------------------------------------------------------Why this course ?

  • A course tailored from 20 years of teaching hundreds of students and business people in live seminars
  • Highly qualified chartered accountant instructor, a finance director at board level and business owner who has been there and been successful
  • Written in a step by step way
  • Suitable for people at all levels who want to develop their financial education
  • Designed for people at all levels

-----------------------------------------------------------------------------------------------------------------Special Offer

  • The initial low price will be for a limited time. The normal classroom price is $299
  • It will increase shortly to $99
  • You have unlimited access to all lectures for ever
  • If you are not happy with what you are learning there is a full, no questions asked 30 day money back guarantee
  • All future additional bonus lectures are free
  • My help is always available to you if you get stuck or have a question

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What are the requirements?

  • Students do not need any prior knowledge of finance or accounting
  • No prior knowledge is assumed

What am I going to get from this course?

  • Grasp what working capital is all about
  • Calculate working capital easily
  • Use key ratios to help with working capital management
  • Improve working capital
  • Focus on key areas where most of this capital rests
  • Avoid wasting time on areas that are not materially relevant to working capital
  • Calculate the operating cycle
  • Gain confidence in a misunderstood and difficult area of a business
  • Understand key terms

What is the target audience?

  • Anyone who wants a thorough understanding of working capital management
  • A student who wants to monitor working capital
  • A student who wants to really understand the working capital formula
  • This course is not for any other focus apart from a focus on working capital

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: The Working Capital Formula - Setting the Scene
02:09

In this lecture students will see briefly the outline of the structure of the working capital course. We take an overview of the topics covered and how it will be delivered.

02:21

In this lecture you will start to understand the terminology of working capital . It is often a very misunderstood term. When its not understood much can go wrong as so much money is invested in its areas.

Firstly, though we introduce common key terms and a key time perspective on when it is applied. Students may have heard of some terms and they will see these referred to and explained in the course.

Section 2: How to Calculate Working Capital Easily
02:58

This looks at the key components of the working capital definition. In this lecture you will learn the key parts of the definition. You will learn that the focus is on the short term current assets and current liabilities of a business.

03:11

This lecture introduces the important area of working capital management as a concept that applies across different areas. In other words it is not just about one component working well and neglecting other parts. It is about the sum of the parts.

Section 3: Working Capital Formula Components
04:20

This lecture will start to look at the key financial statement, called the Balance Sheet. This is important to understand as it is this that will tell us about the working capital in the business. It will introduce what it is all about and explain its format and where the working capital balances are found.

06:03

This lecture takes a deeper look at one of the key components in working capital. These are the current assets of a business. In this lecture students will review 4 of these key categories of current assets.

03:14

In this lecture students will learn about one of the main other components of the working capital formula, current liabilities. Students will learn where to find them in the Balance Sheet. We will also look at practical examples of typical current liabilities.

Section 4: Working Capital Formula - Case Study Information Discussed
04:08

This lecture introduces the balance sheet example from Fashion Mac's business. We introduce her business facts and figures. You will start to hear key terms and concepts. We briefly touch on trend analysis and benchmarks.

04:12

You will learn more about the different parts of the balance sheet example that are relevant to working capital. We will start to focus on these in more detail. You will take away more with additional tips and learning as we have a quick look at other key parts of the information that is presented.

Section 5: Interpret and Manage Working Capital : Case Study
03:49

If you want to see how good is working capital, first you have to know how to concentrate on the really important areas where it moves .Once you have found these it is time to analyse. We can do this effectively with what are called financial ratios. Here you will look at 3 key ratios that are often applied to help us with key areas of trade customers, suppliers and inventory.

04:19

This ratio will you a fantastic amount about the customers of the business. Of course the principles apply where a business has a lot of credit customers. This is true as this ratio looks in detail at the average credit period these customers take to pay their bills.

In this lecture we look at how to calculate the trade accounts receivable ratio. Then we start to reflect on the case study balance sheet example and income statement example and how we can apply the ratio to the case study example.

The Trade Accounts Receivable Ratio - Part 2
05:06
03:51

In this lecture you will start to focus on money going out, in particular to trade suppliers. In this part of the business we can use another financial ratio that will help us to analyse this area. This is called the trade accounts payable ratio. In this lecture we look at the trade accounts payable ratio formula.

It will show you how long on average it takes the business to pay those trade suppliers that it buys goods or services from on credit.

You will also learn how the formula is used to extract information from the case study.

03:14

Another Important area is this area of inventory or stock. A lot of resources are often invested in this part of the business. So oftentimes you will want to see how effectively are these resources being used.

In this context you will see that this lecture looks at a financial ratio that can help with this. It is called the inventory turnover ratio.

In this lecture we look at an inventory turnover ratio formula and use it to calculate worked examples from the case study.

04:47

In this lecture you review a high level summary of the results that we have calculated. The key areas of the business are reviewed and also they are reviewed for two years of data.

At this stage you have used different these different types of working capital ratios. These have informed you about the customers, the suppliers and the inventory.

In this lecture you will discover how we can add these together to give us an overall net investment perspective of the number of days tied up in working capital.

This is called the working capital cycle. You can compare it to its previous figure.

Section 6: Improving Working Capital
2 pages

From this lecture you will gain an understanding of many different areas of a business that can yield benefits from improving working capital management.

Many businesses often spend time on one issue. Energy invested into different with lots of incremental shifts can often have as dramatic an effect.

03:13

A unique way of looking at what a day is worth in working capital. In this example you will see that we take one area of the business of Fashion Mac and look at improving that area.

This insight will provide a useful reminder of the principle of why working capital management can be so powerful in so may different ways to business success.

Section 7: Summary and Thank You
02:49

In this you will quickly review the key information and learnings that the course has presented in a easy step by step way.

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Instructor Biography

Kieran McSherry, Business Coach/Entrepreneur

Business Coach/Entrepreneur

I was brought up in family businesses . At that time I was involved in marketing/sales and driving the business forward. I needed the financial side. I went on to university to study accountancy.

I qualified as a chartered accountant with PriceWaterHouseCoopers, (PWC) one of the leading accountancy practices in the world.

I worked internationally and locally to develop my business skills. This included time spent at Board level at Finance/Operations Director. In Operations I was in charge of increasing business and making it run well through sales/marketing/operations.

I ended up working at Board level with some fantastic business CEO's/business owners.

Then I created my own businesses.So I have a multi disciplinary skillset that can help build business, sell ,negotiate and I get the numbers very well.

Teaching to Students/Business people

I always kept in touch with my local university where I graduated in Ireland, where I started my accountancy studies. This came full circle, when I was excited to go back several times a year to teach business skills & finance. This teaching was to people from all different business backgrounds. From staff, managers, directors , business owners.

These included people who were working in business and need to know more to develop there career. It also include business owners who were interested in learning how to improve financial performance.

I really enjoyed this, having taught university students in accountancy, some years earlier.

Video

To balance the time available for teaching I had, and their desire for more courses, I created a you tube channel. It has proved popular with 50,000 views in a few months since start up.

Alongside the teaching, the finance skill set all along the way has proved invaluable.

Overall, I do love creativity, and have come from a strong experience in business and finance. I try to help others as best I can in a affordable way who may not have access to these skills.

Writing

I have published 5 books in Business.

Membership

I am a Fellow of the Institute of Chartered Accountants in Ireland. I qualified with an honors in my Accounting degree and went on to be selected to do a special postgraduate Diploma in Accounting at the University where I taught.

Learn From Quality Experts.

Do your best to find great mentors/experts. You will learn quicker. The best ones always find a way to make it interesting and easier .

They will focus on the important stuff for you.




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