FS3. Cash Flow Statements Explained – Reading them to manage the cash and avoid insolvency

Self-paced, whenever and wherever you like

Cash flow is the lifeblood of all businesses and while profit is necessary, many profitable businesses have become insolvent. Results, returns and ratios are for nought if the business goes broke.

Using clear, colourful diagrams and by translating jargon into plain English, this course explains how to read and use Cash Flow Statements, including:

  • What a Cash Flow Statement is, very simply
  • The different categories of cash flow, their components and their significance
  • A very important calculation to show the financial sustainability of the business
  • The interrelationship between cash flow and profit
  • Common ways of going broke and how to avoid them
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This approximately one-hour course, which includes several quizzes, explains how to read and interpret Cash Flow Statements in plain English. You can make notes on the accompanying booklet and there’s a Glossary of Terms for easy reference afterwards. You get a certificate when you’ve completed the course. No prior knowledge is necessary but everyone except experts will learn from the course.

Learning outcomes:

  • Being able to read and interpret your Cash Flow Statement
  • Being confident in participating in discussions about Cash Flow Statements and in asking searching questions of accountants and understanding the answers
  • Knowing how to calculate whether the business is generating enough cash and being alert to potential insolvency
  • Understanding the impact of business decisions on cash flow
  • Helping to determine whether the business can afford to pay employees more
  • Being able to hold others to account for their decisions and impact on cash flow
  • Making better financial and business decisions.
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