Capstone project — Read and steer a company's accounts — from the balance sheet to the decision
- Goal: starting from a real or fictional company (yours, or a case study), put together a complete financial file — from understanding the accounts to analysing them and supporting decisions.
- Materials: the Finance & Accounting cheat sheet below (vocabulary, mechanisms and reference points) to keep at hand. Reminder: accounting and tax rules depend on the country — always check your local legislation.
- Method: one step per level. We start from the vocabulary, read the financial statements, analyse, steer — keeping the red thread "cash is not profit".
⬇️ Download the Finance & Accounting cheat sheet (TXT)
Step 0 · Level 0 — Lay the foundations (L0)
Master the vocabulary (debit/credit, assets/liabilities, expenses/income), spot the logic of the chart of accounts and the obligations that apply in your country.
Step 1 · Level 1 — Understand journal entries (L1)
Apply double-entry bookkeeping to simple transactions, follow the journal → general ledger → trial balance chain, post purchase/sale entries with VAT and do a bank reconciliation.
Step 2 · Level 2 — Read the financial statements (L2)
Read a balance sheet (wealth) and an income statement (performance), understand the closing entries (depreciation, provisions) and the difference between accounting and taxable profit.
Step 3 · Level 3 — Analyse (L3)
Break the result down with the SIG (including EBE), calculate some key ratios, analyse the working capital requirement and cash, and calculate the break-even point; sketch a cash flow forecast.
Step 4 · Level 4 — Steer (L4)
Calculate costs per product/activity (cost accounting), build a budget and track the variances, set up a KPI dashboard, and appraise an investment (NPV, IRR, ROI).
Step 5 · Level 5 — Taxation & summary (L5)
Identify the main applicable taxes, understand the link with payroll, anticipate digitalisation (software, e-invoicing) and prepare a year-end closing. Deliver a summary "readable by a non-financial person".
Success criteria
- Mastery of the vocabulary and of the accounting logic (double-entry, chart of accounts, journal → general ledger → trial balance chain).
- A correct reading of the financial statements (balance sheet, income statement, annual accounts) and of the closing principles.
- A well-argued financial analysis: SIG/EBE, interpreted ratios, WCR/cash, break-even point, cash flow forecast.
- Steering tools (costs, budget, dashboard, investment choice) and a summary understandable by a non-financial person, in compliance with local rules.