In this module, you will learn the basics of finance for startups. You will be introduced to basic concepts of accounting and financial analyses.
While completing this module, think about the following questions:
- What are the different types of costs?
- What are the different types of financial statements and what are they each used for?
- What is a break even analysis?
- What is a cash flow analysis?
Read the following materials to learn more about basic accounting for businesses and financial analyses.
‘How To Create a Startup Financial Statement’ (10 mins)
This article introduces the financial statement for startups by covering some of the most important financial documents (balance sheet, income statement, cash flow statement, and breakeven analysis). You will learn how to define and build each of these financial documents and analyze examples for each.
‘How to Do a Cash Flow Analysis with Examples’ (10 mins)
When reading this article, you will learn how to create a cash flow analysis with a step by step guide on how to do so. You will also learn some tips on how to manage cashflows for your startup.
‘What is Break-Even Analysis?’ (15 mins)
This article explains the break-even (BE) analysis. You will learn how to create the BE analysis (formulas and calculations), how to interpret it, and why it is important. You will also learn the benefits and limitations of the analysis.