The aim of this help document is to promote business planning and financial competencies in small and medium sized firms in order to improve prospects for long term success! You are invited to work through this document page-by-page, and at your own pace, and it is hoped that in doing so you will gain a greater understanding of basic accounting principles, or if you’re already well versed in accounting, it might serve as a useful refresher course in the basics. Part 1 deals with the basic financial documents, the Profit and Loss Account and the Balance Sheet, the relationship between them, and the relationship between profits and cash. Part 2 deals with the relationship between profits and costs and in particular the variable or fixed nature of costs, and breakeven calculation. Part 3 looks at cash in more detail and in particular the impact of changes in the Balance Sheet Working Capital on cashflow. Part 4 deals with basic investment appraisal, calculation of Simple Payback, and some of the key financial ratios which you can use to monitor the progress of your business.

34. Q&A To review this course go to http://centralaccounting.co.uk/accounting-basics/ Your presenter was Paul Driscoll ACMA www.linkedin.com/in/driscollpaul