From time to time I take time out to attend one of our partners workshops. This enables me to recommend them to clients and visitors to the Business & IP Centre from personal experience and hopefully to learn something new and useful.
I have been aware of my lack of understanding of business accounts (despite having spent 16 years working for an investment company in the City of London). So although familiar with the terms gross and net profit, cash versus accruals, assets versus liabilities and not forgetting the many and varied ratios such as: Liquidity, Asset turnover, Financial leverage and of course Profitability, I wasn’t confident about what they actually meant.
If you had watched the semi-final of the latest BBC Apprentice series, you would have seen the eventual winner get in something of a muddle about the difference between net and gross profit for the business she had been successfully running for six years.
Now, thanks to attending our Beginners Guide to Business Finance course run by Johnny Martin I am feeling much more confident about how to create a set of management accounts (both for before and after a business starts). And I am now more familiar with these important business concepts. I particularly liked the way he used live spreadsheets to show the impact of a change in price or order volume on the profit (or loss) for the year.
My favourite quote from Johnny after explaining the roles of various accounting jobs from Book keeper to Financial Director was, ‘you can delegate but DON’T abdicate’, financial responsibility for your business. The experiences of both Elton John and Leonard Cohen are salutary reminders of this point.
The courses cost just £18 and are run at regular intervals here in the British Library.