Reserves and cash
The balance sheet, reserves and cash flow.
- Level
- Bitesize
- Learning time
- 1 hour 15 minutes
- Where
- Finance for Non Finance Professionals
- Price
- £39
When you step up to a higher level, what you paid in the last 12 months for lower-level courses inside the bigger course comes off its price, in proportion to how much of each is inside it, whichever topic it's from. Courses at the same or a lower level don't give credit against each other. A Focus course or above always costs at least £15. Read the full terms
Certificate of Completion
Overview and Outcomes.
Overview
This module explains the balance sheet as a photograph of what an organisation owns and owes, and why net assets are not money in the bank. It sets out the four blocks, overlooked liabilities such as pensions, provisions and leases, charity funds from endowment to free reserves, and council usable and unusable reserves. Through the Bryn Care Trust example, it shows how a reserves policy becomes a concrete board control. This module examines why profitable organisations still run out of money and how boards can see it coming. It covers why profit and cash diverge, the three sections of the cash flow statement, the working capital cycle, why growth eats cash, building a thirteen week cash forecast, and covenants and liquidity headroom. The University of Dundee case, drawn from the Gillies Report, shows how a liquidity and culture failure becomes a public crisis.
What you'll develop
In this Bitesize, you will develop the ability to:
- Explain the four blocks of the balance sheet and identify liabilities boards tend to overlook, including pensions, provisions, contingent liabilities and leases.
- Distinguish endowment, restricted, designated and free reserves in charities, and usable from unusable reserves in councils.
- Assess whether reserves are too little, too much or about right against risk, and set out what a defensible reserves policy should contain.
- Explain why profit and cash diverge, and read the operating, investing and financing sections of a cash flow statement.
- Use a thirteen week cash forecast, working capital measures and liquidity headroom to find the low point and test a delayed income scenario.
The Modules.
1 hour 15 minutes of learning.
- 04The Balance Sheet and ReservesThis module explains the balance sheet as a photograph of what an organisation owns and owes, and why net assets are not money in the bank. It sets out the four blocks, overlooked liabilities such as pensions, provisions and leases, charity funds from endowment to free reserves, and council usable and unusable reserves. Through the Bryn Care Trust example, it shows how a reserves policy becomes a concrete board control.38 min
- 05Cash Is King: Cash Flow and Working CapitalThis module examines why profitable organisations still run out of money and how boards can see it coming. It covers why profit and cash diverge, the three sections of the cash flow statement, the working capital cycle, why growth eats cash, building a thirteen week cash forecast, and covenants and liquidity headroom. The University of Dundee case, drawn from the Gillies Report, shows how a liquidity and culture failure becomes a public crisis.38 min
Keep going.
Part of the Finance for Non Finance Professionals topic, also sold whole as Follow the money.
Go deeper, and pay only the difference
- You are hereBitesize, 1 hour 15 minutes, £39
- Next stepFocus, Reading the accounts, 3 hours 30 minutes, £69. Already own the Bitesize? You pay £30.
- Explore, Financial literacy for leaders, 6 hours, £129. Already own the Bitesize? You pay £90.
- The whole topicImmerse, Follow the money, 11 hours, £249. Already own the Bitesize? You pay £210.
When you step up to a higher level, what you paid in the last 12 months for lower-level courses inside the bigger course comes off its price, in proportion to how much of each is inside it, whichever topic it's from. Courses at the same or a lower level don't give credit against each other. A Focus course or above always costs at least £15. Prices per person. Read the full terms
Also part of: Governing the money
Other Bitesize in the Finance for Non Finance Professionals topic
- Did we live within our means?The language of finance and the income statement2 hours£39
- Reading between the linesReading accounts and spotting warning signs1 hour 15 minutes£39
- When the numbers misleadCreative accounting and external audit1 hour 15 minutes£39
- What things really costCost behaviour, overheads and activity-based costing1 hour 15 minutes£39
- Value for money, budgets that workInvestment appraisal and budgeting approaches1 hour 15 minutes£39
- Keeping the budget honestBudget monitoring, capital and borrowing1 hour 15 minutes£39
