Basics of Finance – Foundation

Course Title:

Finance Foundations – Core Principles & Applications
(Prepares you for AI in Finance with Tally)

Course Line:

A complete foundation course that prepares you for AI in Finance with Tally.

Module 1: Understanding Finance and Its Role

1. What is Finance and Why It Matters

2. How Finance Differs from Accounting

3. Types of Finance – Personal, Corporate, Public

4. Key Financial Functions – Planning, Funding, Control

5. Flow of Money in Business (Revenue → Cost → Profit → Reinvestment)

Core Terms: Finance, Accounting, Capital, Cost, Revenue, Profit, Expense, Cash Flow, Financial Management.

Module 2: Financial Structure and Sources of Funds

1. Understanding Capital and Funding

2. Sources of Finance – Equity, Debt, Retained Earnings

3. Fixed Assets vs. Current Assets

4. Working Capital and Liquidity

5. Short-Term vs. Long-Term Financing

Core Terms: Equity, Debt, Loan, Leverage, Capital Structure, Assets, Liabilities, Working Capital, Solvency.

Module 3: Understanding Financial Statements

1. Overview of the Three Financial Statements

2. Profit & Loss Statement – How Profit is Measured

3. Balance Sheet – What a Business Owns and Owes

4. Cash Flow Statement – Tracking Real Money

5. Connecting the Three Statements

Core Terms: Revenue, Gross Profit, Operating Profit, EBIT, EBITDA, Net Profit, Assets, Liabilities, Capital, Retained Earnings, Cash Flow.

Module 4: Measuring Profitability and Financial Performance

1. Gross Profit vs. Net Profit

2. EBIT and EBITDA – Operating Efficiency

3. Profit Margins – Gross, Operating, and Net

4. Return Ratios – ROI, ROE, ROA

5. The Difference Between Profit, Cash Flow, and Value

Core Terms: EBIT, EBITDA, Margin, ROI, ROE, ROA, Turnover, Efficiency, Return, Value.

Module 5: Budgeting, Planning, and Forecasting

1. What is a Financial Plan and Budget

2. Forecasting Income and Expenses

3. Break-Even Point – When Profit Starts

4. Variance Analysis – Actual vs. Planned

5. Cost Types – Fixed, Variable, and Overheads

Core Terms: Budget, Forecast, Break-Even, Fixed Cost, Variable Cost, Overhead, Variance, Planning.

Module 6: Core Finance Principles and Concepts

1. Time Value of Money (Concept Only)

2. Simple and Compound Interest

3. Risk and Return – Basic Understanding

4. Accrual vs. Cash Basis

5. Capital vs. Revenue Expenditure

Core Terms: Interest, Compound Interest, Risk, Return, Accrual, Expenditure, Cash Basis, Investment, Value.