This topic may seem to sit uncomfortably among modules on educational standards and good governance – but don’t forget that oversight of finances is one of the three core functions of a governing board. This module is intended to give you an understanding of the terms, practices and vocabulary of finance in order that you can have more confidence in working through the _Financial Management for Governors_ module.
By the end of this module, you’ll be able to summarise the benefits of financial competence, explain the vital difference between cash and profit and differentiate between financial accounting and management accounting. The module also looks at the purposes and structure of the balance sheet, profit and loss account and cash flow statement, and how to use information from financial statements to discover how a company is performing. You’ll also be able to plan a budget effectively.