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How to Read a Profit & Loss Account and Balance Sheet

The numbers tell a story

Created byLisa Newton
BeginnerUpdated Oct 22, 2023

What You'll Learn

  • check_circleComprehend Financial Statements
  • check_circleInterpret Financial Data
  • check_circleAnalyze Business Financials
  • check_circleCalculate Key Ratios
  • check_circleUse Financial Insights for Decision-Making

About This Course

Just like words, the numbers in a business tell a story. And our job today is to learn the language of finance.

A Profit & Loss Account: shows at a glance how much profit has been made, from a calculation of the total from business activities minus the total incurred in running costs.



Topics:
  • Fundamentals of Financial Statements:Grasp the basic components of a Profit & Loss Account and Balance Sheet, and understand how they reflect financial health.
  • Analyzing Business Performance:Explore how to dissect corporate financials, assessing profitability, liquidity, and stability.
  • Personal Finance Insights:Apply financial statement analysis to your personal life, making informed decisions and setting financial goals.
  • Key Ratios and Metrics:Learn how to calculate and interpret crucial financial ratios to gauge performance and potential.
  • Forecasting and Planning:Use financial statement insights for forecasting and strategic planning in both business and personal contexts.
  • Risk Management:Identify financial warning signs and develop strategies to mitigate risks, safeguarding your financial well-being.

Course Content

1 activity • 13 videos • duration: 1h 52m

remove
Section 113 videos • 1.9 hours
  • videocamHTR 1 INTRO
    Duration 2:52
  • videocamHTR 2 definitions
    Duration 10:12
  • videocamHTR3 read a balance sheet
    Duration 16:55
  • videocamHTR4 portman
    Duration 11:17
  • videocamHTR5 portman balance sheet
    Duration 10:44
  • videocamHTR6 grangeworth kitchens pnl
    Duration 5:34
  • videocamHTR7 grangeworth kitchens bs
    Duration 5:25
  • videocamHTR8 financial language
    Duration 10:31
  • videocamHTR9 effects accounting adjustments
    Duration 16:59
  • videocamHTR10 kpis
    Duration 8:33
  • videocamHTR11 portman analysis
    Duration 5:14
  • videocamHTR12 grangeworth analysis
    Duration 4:10
  • videocamHTR13 conclude
    Duration 4:27

Your Instructor

Lisa Newton

Infopreneur, Author & Bookkeeping tutor

menu_book19 courses
star458 reviews

Lisa Newton BA MSc AAT has a Masters degree in Investment Management and a first class honours degree in Accounting with Marketing. She formed her first company in 2004 with £150 in the same month of graduating from City University, London UK. Lisa has never had a full-time 9 to 5 job in her life. She's a serial entrepreneur and author who holds directorships in various industries including telecoms, property management, publishing, hair & beauty as well as finance. She has won various awards in Business including: Young Entrepreneur of the Year Award 2007, in 2008 Enterprising Business Award, in 2016 BE Mogul Award and has been nominated and shortlisted in numerous others. In 2011 and in 2012 one of her companies won Best Accounting Franchisor Award. In 2015 and 2017 one of her companies won Best Bookkeeping Business London (Accountancy International Awards). Lisa's books include: How to write a book in two weeks, Constant Cashflow, Make the most of your money, How to start your own bookkeeping business, Cosmic Ordering with Vision Boards, How to Franchise Your Business and Quickbooks Online The Handbook. Some of the books are in audio-format on itunes and audible. Lisa hosts her own show The Authors Podcast which can be found on the iTunes channel. Lisa supports the charity The MS Society. A speaker, coach, consultant and an avid networker, Lisa enjoys meeting people and working on projects with like-minded individuals. In her spare time, Lisa likes traveling, dancing salsa, writing books, learning languages, meditation, yoga and cosmic ordering.

Credit Information

Is this course eligible for my CPD requirements as a Canadian CPA?

Provincial regulators of CPAs in Canada do not require that independent providers of CPD be approved to offer courses. Instead, individual CPAs are responsible for assessing whether a CPD activity meets their requirements, and may take activities from any source provided those requirements are met.

Every course offered on LearnFormula is delivered by a qualified subject matter expert or learning organization, and advances learning objectives that are relevant to the responsibilities or professional competencies of Canadian CPAs. All activities on LearnFormula are quantifiable in terms of hours, and are also verifiable, in that users receive documented evidence of their attendance via a certificate of completion after finishing a course (and this certificate is stored by LearnFormula indefinitely). Nearly 100,000 Canadian CPAs successfully satisfy their CPD requirements via LearnFormula on an annual basis.

What Students Are Saying

4.5 out of 5
Student's Choice
68 reviews
  • JL
    JIAO L.
    starstarstarstarstar

    good course

  • MD
    Marie D.
    starstarstarstarstar

    the course, so far, appears interesting

Frequently Asked Questions

We are a registered provider with 300+ associations and regulatory bodies worldwide. We operate across 27 global markets including Canada, the US, Australia, and the UK. Every course page clearly displays its specific accreditations. Upon completion, you receive a professional certificate that can be validated online. Our certificates include all necessary accreditation details, credit hours, and completion dates, and are formatted specifically to meet the submission requirements of most global regulatory bodies.

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