BaSIS Framework™ and The Value Cycle

Fix the cause not the symptom

Accounting Literacy enables Financial Literacy which enables

Business Literacy.

Understand the BaSIS Framework

The BaSIS Framework brings

a balance sheet and income statement

together to tell the story of how finance

moves around an organisation.

Understand the Value Cycle

The Value Cycle is used to show how the

business generates value for the owners

through the funding and using of assets.

Equity

USE OF FUNDS SOURCE OF FUNDS

The owners contribute funding…

Equity

USE OF FUNDS SOURCE OF FUNDS

Funding is leveraged with loans

Liabilities

Equity

USE OF FUNDS SOURCE OF FUNDS

Assets acquired andused to earn income….

Liabilities

Assets

Equity

USE OF FUNDS SOURCE OF FUNDS

Unfortunately the business must destroy value as expenses…

Liabilities

Assets

Expenses

Equity

USE OF FUNDS SOURCE OF FUNDS

…to generate value as income…

Liabilities

Assets

ExpensesIncome

Equity

USE OF FUNDS SOURCE OF FUNDS

Owners claim the surplus as profit

Liabilities

Assets

ExpensesIncome

Learn

• How a balance sheet and income statement work together

• Build confidence with financial statements• Learn the language your finance team speaks• Develop your financial literacy

Next steps?

Attend a public course Arrange an in-house course Book a meeting

www.colouraccounting.holstgroup.co.uk info@holstgroup.co.uk

0845 456 4000