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Finance for Startups

Accounting

Martin van Wunnik

Xavier Corman

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Sponsors

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Accounting as a management tool:

reading and interpreting Balance

Sheet and P&L Statement

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• Balance Sheet

• Profit & Loss Statement

• Live Interpretation of public figures

• Q&A

Workshop

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This presentation is available for free

www.slideshare.net/xaviercorman

www.slideshare.net/FinanceCoach24

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Who we are ?

Martin van Wunnik

Xavier Corman

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Accounting: notions

• Balance Sheet – Bilan – Balans

• Profit & Loss – Compte de résultat – Winst-en Verliesrekening

• Cash-flow – Trésorerie – Schatkist

• Financial Plan – Plan financier – Financieel Plan

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Obligation to publish

All companies have to publish their balance

sheet and profit & loss every year at the Belgian

National Bank (BNB/NBB)

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Who will read your B-S/P&L ?

• Suppliers

• Clients

• Competitors

• Creditors (Banks, investors)

• Rating agencies (Graydon, Dun&Bradstreet,

Coface, etc.)

• Fiscal administration

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ACCOUNTINGACCOUNTINGACCOUNTINGACCOUNTING

====

COMMUNICATIONCOMMUNICATIONCOMMUNICATIONCOMMUNICATION

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Principles

To gain confidence with your relations, your

figures must

� Reflect the reality

� Be constant from a year to another

� Communicated on time

-> CHOOSE A GOOD ACCOUNTANT !

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Accounting: Balance Sheet

Non Current Assets

(Actifs Immobilisés)

Equity

(Capital+reserves)

LT Debts

ST Debts

Current Assets

(Actifs circulants)

ACTIVE PASSIVE

KPI:

Debt/EquityKPI:

ST Debts/

Currents Assets

KPI:

LT Debts/

Non Currents

Assets

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KPI

Debt/Equity 2010: EUR 7,2 M/EUR 6,6 M = 1,09

Debt/Equity 2009: EUR 7,7 M/EUR 6,8 M = 1,13

ST Debts/Current Assets 2010: EUR 0,5 M/EUR 9,2 M = 5 %

ST Debts/Current Assets 2009: EUR 0,5 M/EUR 10,4 M = 4,8 %

LT Debts/Non-Current Assets 2010: EUR 5,5 M/EUR 7,0 M = 78,5 %

LT Debts/Non-Current Assets 2009: EUR 5,2 M/EUR 6,7 M = 77 %

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Accounting: Profit & Loss (P&L)

Revenues (Sales…)

COGS (Cost of Sales)

General Expenditures

Personnel Costs

Depreciation

Financial cost

Profit

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GROSS MARGIN –

GENERAL

EXPENDITURES

PERSONNEL COSTS

DEPRECIATION

FINANCIAL COSTS

FIN. REVENUES

LOSS

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ICAB: some KPIs

• Turnover : not communicated

• Gross margin: EUR 63K (2010) from EUR 83 K (2009)

• EBITDA 2010: EUR -367 K + EUR 257 K = EUR -110 K

• EBITDA 2009: EUR -290 K + EUR 234 K = EUR – 166 K

• ROE 2010: negative

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Comparison

You have to compare figures with

�Previous years

�Competitors

�Similar companies

�Similar industries

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DECLINEORGANICAL

GROWTH

BANKRUPCY RECOVERING

E B I T D A

+

-

- +

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Next Workshops

Venue : ICAB (Brussels)

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Questions & Answers

Free download:

http://www.slideshare.net/xavierCorman

http://www.slideshare.net/FinanceCoach24