Colour Accounting BaSIS Framework from The Holst Group
12
BaSIS Framework™ and The Value Cycle
-
Upload
iain-chalmers -
Category
Economy & Finance
-
view
1.795 -
download
0
Transcript of Colour Accounting BaSIS Framework from The Holst Group
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 [email protected]
0845 456 4000
