Workshop: Accounting

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Accounting as a management tool: reading and interpreting Balance Sheet and P&L Statement

How do you read and interpret your two key accounting documents? What can you learn about your partners and competitors from their balance sheet/P&L Statement?

Created for non-professionals in accounting, this workshop intends to give a general knowledge to the starter of what accounting is and how to use accounting as a management tool.

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Workshop: Accounting

  1. 1. Finance for Startups Accounting Martin van Wunnik Xavier Corman20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 1
  2. 2. Sponsors20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 2
  3. 3. Accounting as a management tool: reading and interpreting Balance Sheet and P&L Statement20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 3
  4. 4. Workshop • Balance Sheet • Profit & Loss Statement • Live Interpretation of public figures • Q&A20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 4
  5. 5. This presentation is available for free www.slideshare.net/xaviercorman www.slideshare.net/FinanceCoach2420/03/201207/02/2012 Xavier Corman | Martin van Wunnik 5
  6. 6. Who we are ? Martin van Wunnik Xavier Corman20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 6
  7. 7. Accounting: notions • Balance Sheet – Bilan – Balans • Profit & Loss – Compte de résultat – Winst-en Verliesrekening • Cash-flow – Trésorerie – Schatkist • Financial Plan – Plan financier – Financieel Plan20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 7
  8. 8. Obligation to publish All companies have to publish their balancesheet and profit & loss every year at the Belgian National Bank (BNB/NBB)20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 8
  9. 9. Who will read your B-S/P&L ?• Suppliers• Clients• Competitors• Creditors (Banks, investors)• Rating agencies (Graydon, Dun&Bradstreet, Coface, etc.)• Fiscal administration20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 9
  10. 10. 20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 10
  11. 11. ACCOUNTING =COMMUNICATION20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 11
  12. 12. PrinciplesTo gain confidence with your relations, yourfigures must Reflect the reality Be constant from a year to another Communicated on time -> CHOOSE A GOOD ACCOUNTANT !20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 12
  13. 13. 20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 13
  14. 14. 20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 14
  15. 15. Accounting: Balance Sheet ACTIVE PASSIVE Equity (Capital+reserves) KPI: Non Current Assets LT Debts/ (Actifs Immobilisés) Non Currents Assets LT Debts KPI: Debt/Equity KPI: Current Assets ST Debts/ (Actifs circulants) ST DebtsCurrents Assets 20/03/2012 07/02/2012 Xavier Corman | Martin van Wunnik 15
  16. 16. 20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 16
  17. 17. 20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 17
  18. 18. 20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 18
  19. 19. KPIDebt/Equity 2010: EUR 7,2 M/EUR 6,6 M = 1,09Debt/Equity 2009: EUR 7,7 M/EUR 6,8 M = 1,13ST Debts/Current Assets 2010: EUR 0,5 M/EUR 9,2 M = 5 %ST Debts/Current Assets 2009: EUR 0,5 M/EUR 10,4 M = 4,8 %LT Debts/Non-Current Assets 2010: EUR 5,5 M/EUR 7,0 M = 78,5 %LT Debts/Non-Current Assets 2009: EUR 5,2 M/EUR 6,7 M = 77 % 20/03/2012 07/02/2012 Xavier Corman | Martin van Wunnik 19
  20. 20. Accounting: Profit & Loss (P&L) COGS (Cost of Sales) General Expenditures Personnel Costs Revenues (Sales…) Depreciation Financial cost Profit20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 20
  21. 21. GROSS MARGIN – GENERAL EXPENDITURES PERSONNEL COSTS DEPRECIATION FIN. REVENUES FINANCIAL COSTS LOSS20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 21
  22. 22. ICAB: some KPIs• Turnover : not communicated• Gross margin: EUR 63K (2010) from EUR 83 K (2009)• EBITDA 2010: EUR -367 K + EUR 257 K = EUR -110 K• EBITDA 2009: EUR -290 K + EUR 234 K = EUR – 166 K• ROE 2010: negative20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 22
  23. 23. ComparisonYou have to compare figures with Previous years Competitors Similar companies Similar industries20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 23
  24. 24. ORGANICAL + DECLINE GROWTH - BANKRUPCY RECOVERING - + EBITDA20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 24
  25. 25. Next Workshops Venue : ICAB (Brussels)20/03/201207/02/2012 Xavier Corman | Martin van Wunnik 25
  26. 26. Questions & Answers Free download: http://www.slideshare.net/xavierCorman http://www.slideshare.net/FinanceCoach2420/03/201207/02/2012 Xavier Corman | Martin van Wunnik 26

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