Accounting Basics 101 for Understanding Business
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Accounting Basics 101 for Understanding Business

A practical guide to accounting basics, balance sheet working capital, learn with your #1 Chartered Accountant Coach
4.8 (2 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
14 students enrolled
Last updated 1/2016
Price: $20
30-Day Money-Back Guarantee
  • 1 hour on-demand video
  • 1 Supplemental Resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • 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
View Curriculum
  • Students do not need any prior knowledge of finance or accounting
  • No prior knowledge is assumed

This course is for you if you need to understand accounting basics and key area of cash flow management in accounting. This key area in any business, in accounting terms is about effective working capital management.

But this is accounting basics in an easy to understand way. And put simply it is about cash flow. Many managers and owners of small business are dismayed at what the cost of cash is. When they learn accounting tools, that show how money can be wasted so easily in this crucial area.

The course examines the business accounting balance sheet. It dives deeper and you'll learn all about working capital .It looks at changes in this net working capital and how these can be evaluated. In particular you will learn about the areas of accounts receivables, accounts payable and inventory. You will see this through a worked case study. You'll start to see the huge impact proper management can make.

If you want to explore the business accounting balance sheet easily, focus in and learn accounting ways on how to improve working capital performance, with key financial or accounting ratios, than help you review these areas quickly and simply, this course is for you.

It is set out, step by step, so that it is suitable for all levels


There are a growing number of students taking our classroom teachings who may not fully grasp this at the outset, but by the end of the course, see this area as one of the most important parts of their accounting course.

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

The course starts off with the business accounting definitions and theory.

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

By the end of the course students will :

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


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

  • 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


Who 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
Compare to Other Accounting Courses
Curriculum For This Course
18 Lectures
The Working Capital Formula - Setting the Scene
2 Lectures 04:30

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.

Preview 02:09

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.

Preview 02:21
How to Calculate Working Capital Easily
2 Lectures 06:09

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.

Preview 02:58

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.

Preview 03:11
Working Capital Formula Components
3 Lectures 13:37

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.

The Balance Sheet

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.

4 Key Current Assets

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.

Current Liabilities to Focus on
Working Capital Formula - Case Study Information Discussed
2 Lectures 08:20

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.

Case Study : Balance Sheet Example Introduction

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.

Case Study : Review of Balance Sheet
Interpret and Manage Working Capital : Case Study
6 Lectures 25:06

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.

How Good is Working Capital ?

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 1

The Trade Accounts Receivable Ratio - Part 2

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.

The Trade Accounts Payable Ratio

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.

The Inventory Turnover Ratio

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.

Summary and Review of Case Study Results
Improving Working Capital
2 Lectures 03:13

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.

9 Tips on Improving Working Capital
2 pages

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.

What is a day Worth?
Summary and Thank You
1 Lecture 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.

Recap and Closing Thoughts
About the Instructor
Kieran McSherry (BSc Acc; PG Dip Acc; FCA )
4.6 Average rating
5 Reviews
254 Students
3 Courses
Finance Director/Chartered Accountant/Business Owner

Chartered Accountant & Finance Director 

I was brought up in family businesses and 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 to develop my business skill that included time spent at Board level at Finance Director. 

The qualification of a chartered accountant is a very strong brand for business. It helps in the creation some of many small own businesses.

Teaching to Students/Business people

I always keep in touch with my local university , where I started my accountancy studies. I to go back several times a year to teach business skills & finance. This teaching is to people from all different business backgrounds. From staff, managers, directors , business owners.

I 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.


I have published 5 books in Business.


I am a Fellow of the Institute of Chartered Accountants in Ireland and qualified with an honors in my Accounting degree. From there I was shortlisted and selected to do a special postgraduate Diploma in Accounting at University

Learn From Quality Experts.

I hope this course or another helps you find accounting training that works for you. 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 .