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This course is part of the Finance & Accounting track.
Introduction to Financial Accounting
 

Financial Accounting

$1,750
Next 8-week session starts April 19th
Apply
Discover what's behind the numbers in financial statements.
8
weeks
6-8
hours per week
7
modules
Self-Paced
with regular deadlines

 This course earns you a Certificate of Completion from HBS Online. What you earn.

Overview
Syllabus
Enrollment
Stories
FAQs
Apply Now

Key Concepts

Discover how balance sheets, income statements, and cash flow statements are developed and how each interact
Evaluate the financial health of a business using financial statements
Understand GAAP and IFRS standards
Prepare and evaluate financial forecasts to make strategic decisions
Value a venture, project, or investment opportunity and perform a sensitivity analysis

Who Will Benefit

Learn the language of business through accounting as you gain the skills and knowledge to analyze financial statements.
Reading a balance sheet was completely alien to me. Since taking Financial Accounting, I’ve been keeping track of my company’s annual reports, and the accounting that I learned helps me in understanding where the business may head in the future. I’ve also been tracking a few other companies for investment purposes, and I’ve realized that I can make more informed decisions with my improved knowledge of company financials.
Pankaj Prashant
Medium Term Planning Engineer at Rio Tinto
Prepare for the MBA classroom with the program Harvard Business School offers to incoming students.
A few weeks into the course, accounting terminology came alive as I realized why accounting is the language of business. I can now talk confidently with clients and understand the business aspect of their problems.
Gaurang Manjrekar
Technology Consultant
Gain confidence in your ability to understand financial statements and communicate financial results.
My job is project-based, and I'm currently leading the operational functions of a system-wide IT implementation, a project that affects the daily work of a few thousand employees. Knowing how to read financial statements or look at data sets and understand them has helped me make major decisions on future state reporting.
Kali Pfaff

What You Earn

Certificate of Completion

Certificate of Completion

Boost your resume with a Certificate of Completion from HBS Online

Earn by: completing this course

Certificate of Specialization

Certificate of Specialization

Prove your mastery of finance and accounting

Earn by: completing any three courses within this subject area to earn a Certificate of Specialization

Learn More about what you earn

Syllabus

7 Modules, 60 Hours
Download full syllabus
8.5
hrs
Module 1

The Accounting Equation

Understand key accounting concepts, terms, and principles.

Highlights

Starting a Business
Receiving Payments in Advance
Accounting Principles and Rules
ShowHide Details

Concepts

  1. Accounting Equation Components
  2. Basic Transactions and the Equation
  3. Accounting Principles and Rules
  4. Formal Definitions of Accounting Terms

Featured Exercise

  • Demonstrate how different transactions impact the accounting equation
8.5
hrs
Module 2

Recording Transactions

Understand where financial statement information originates.

Highlights

Journal Entries
Building a Trial Balance
ShowHide Details

Concepts

  1. Journal Entries and T-Accounts
  2. Advanced Journal Entries
  3. The Trial Balance

Featured Exercises

  • Record business transactions as journal entries
  • Construct a trial balance
8.5
hrs
Module 3

Financial Statements

Understand the content and purpose of the income statement and balance sheet and how the trial balance is used to create both.

Highlights

Introduction
Creating a Balance Sheet
Introduction to Accounting Period
ShowHide Details

Concepts

  1. The Balance Sheet
  2. The Income Statement

Featured Exercise

  • Construct the balance sheet and income statement
8.5
hrs
Module 4

Adjusting Journal Entries

Understand complex accounting transactions and how they relate to accounting principles and recognize the impact of judgment and bias on financial statements and accounting practices.

Highlights

Deferrals
Mahindra Finance
Mahindra: Loan Process
ShowHide Details

Concepts

  1. Accruals and Deferrals
  2. Inventory
  3. Long-Lived Assets
  4. Credit Risk Management
  5. Deferred Taxes

Featured Exercise

  • Record advanced business transactions as journal entries
8.5
hrs
Module 5

The Statement of Cash Flows

Understand how to construct and interpret the cash flow statement and recognize the differences between GAAP and IFRS standards for cash flow statement creation.

Highlights

The Statement of Cash Flows
Direct vs Indirect Method
ShowHide Details

Concepts

  1. Operating: Direct Method
  2. Operating: Indirect Method
  3. Investing and Financing

Featured Exercise

  • Use the statement of cash flows to evaluate the financial health and lifecycle stage of a business
8.5
hrs
Module 6

Analyzing Financial Statements

Evaluate company performance using profitability, efficiency, leverage, and other ratios.

Highlights

Profit Margin
Cash Conversion Cycle
ShowHide Details

Concepts

  1. Profitability
  2. Efficiency
  3. Leverage
  4. Other Ratios
  5. Impact of Policy Differences

Featured Exercise

  • Analyze ratios and use the DuPont Framework to evaluate the financial state and strategy of a business
8.5
hrs
Module 7

Forecasting and Valuation

Use financial forecasting to predict future revenue, expenses, and cash flow and understand key concepts and metrics in valuation, including time value of money, terminal value, and net present value.

Highlights

Forecasting: Metropolis Health Care
IRR and Payback Period
Industry Insights: Assessing Financial Statements
ShowHide Details

Concepts

  1. Pro Forma and Free Cash Flows
  2. Valuation
  3. Lease Accounting

Featured Exercises

  • Prepare pro-forma financial statements
  • Calculate and forecast free cash flows
  • Learn how to value a venture, project, or investment opportunity and perform a sensitivity analysis of key assumptions
Free E-Book

A Manager's Guide to Finance & Accounting

Learn about the difference between finance and accounting, the financial skills all managers need, and how taking an online course can help you achieve your educational goals and accelerate your career.
Access your free e-book

Our Difference

This course will teach you the fundamentals of financial accounting from the ground up.
Stay active by engaging in a new activity every three to five minutes.
Stay active by engaging in a new activity every three to five minutes.
Description of silent animated video above: Assets equals liabilities and owner's equity
Get social by collaborating with a global community of peers before, during, and after the course.
Get social by collaborating with a global community of peers before, during, and after the course.
Description of silent animated video above: Learner types an answer in the discussion board in response to a peer's question
Immerse yourself in real-world, case-based examples brought to life by industry-leading companies, including PepsiCo, Mahindra Finance, Morgan Stanley, and the American Red Cross.
Immerse yourself in real-world, case-based examples brought to life by industry-leading companies, including PepsiCo, Mahindra Finance, Morgan Stanley, and the American Red Cross.
Description of silent animated video above: Learner scrolls through video interviews from prominent business leaders

About the Professor

V.G. Narayanan
Financial Accounting

Thomas D. Casserly, Jr. Professor of Business Administration at Harvard Business School.
"Financial Accounting puts you in the shoes of an equity research analyst, yoga studio owner, and leader of one of the largest nonprofits in the United States. You’ll wrestle with the same issues they faced, while problem-solving and interacting with fellow learners from around the world."

Dates & Eligibility

Starting
Apr
19
8 Weeks  $1,750
Application deadline April 10
View weekly calendar
Apply Now
Starting
Jun
21
8 Weeks  $1,750
Application deadline June 12
View weekly calendar
Apply Now
Starting
Aug
16
8 Weeks  $1,750
Application deadline August 7
View weekly calendar
Apply Now
  • Scholarships available
  • Free application
  • No documentation required
  • Confirmation within one week

All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the course.

Learn about bringing this course to your organization.

Learner Stories

90%
are more self-assured at work
Having the perspectives of my peers and all the constructive conversation encouraged me to think in new and creative ways. Knowing that your peers were rating your participation and reading your contributions was truly compelling.
Leslie Pico - Perspectives of My Peers
Entrepreneur
This was an awesome way to get your feet wet in the world of business. I think that the courses were well-designed so as to maximize the impact they have on your real-world outlook.
This was an awesome way - Lachlan Hanbury-Brown
Chemistry at Harvard University
Read more learner stories
* Source: 2022 surveys and course data
 
All FAQs

Financial Accounting FAQs

How does the Financial Accounting certificate program relate to the Credential of Readiness program?

+–

In addition to being a standalone certificate program, Financial Accounting is also one component course of the Credential of Readiness (CORe) program, which also includes Economics for Managers and Business Analytics. Designed for those interested in learning business fundamentals more broadly, CORe program participants progress through the three courses in tandem, and the program concludes with a final exam.

What are the learning requirements in order to successfully complete Financial Accounting, and how are grades assigned?

+–

Participants are expected to fully complete all coursework in a thoughtful and timely manner. This will mean meeting each week’s course module deadlines and fully answering questions posed therein, including satisfactory performance on the quizzes at the end of each module (earning an average score of 50% or greater). This helps ensure your cohort proceeds through the course at a similar pace and can take full advantage of social learning opportunities. A module is composed of a series of teaching elements (such as faculty videos, simulations, reflections, or quizzes) designed to impart the learnings of the course. In addition to module and assignment completion, we expect participation in the social learning elements of the course by offering feedback on others’ reflections and contributing to conversations on the platform. Participants who fail to complete the course requirements will not receive a certificate and will not be eligible to retake the course.

More detailed information on individual course requirements will be communicated at the start of the course. No grades are assigned for Financial Accounting. Participants will either be evaluated as complete or not complete.

For more information on grading, please refer to the Policies Page.

Are there scholarships for Financial Accounting? How do I qualify?

+–

Financial Accounting participants may be eligible for financial aid based on demonstrated financial need. To receive financial aid, you will be asked to provide supporting documentation. Please refer to our Payment & Financial Aid page.

What materials will I have access to after completing Financial Accounting?

+–

You will have access to the materials in every prior module as you progress through the program. Access to course materials and the course platform ends 60 days after the final deadline in the program. At the end of each course module, you will be able to download a PDF summary of the module’s key takeaways. At the end of the program, you will receive a PDF compilation of all of the module summary documents.

How should I list my certificate on my resume?

+–

Harvard Business School Online
Certificate in Financial Accounting
[Cohort Start Month and Year]

List your certificate on your LinkedIn profile under "Education" with the language from the Credential Verification page:

School: Harvard Business School Online
Dates Attended: [The year you participated in the program]
Degree: Other; Certificate in Financial Accounting
Field of Study: Leave blank
Grade: Complete
Activities and Societies: Leave blank

For the program description on LinkedIn, please use the following:

Financial Accounting is an 8-week, 60-hour online certificate program from Harvard Business School. This course teaches the fundamentals of financial accounting from the ground up. Participants learn how to prepare and interpret financial statements—the balance sheet, income statement, and cash flow statement—and calculate and interpret critical ratios. The course concludes with an introduction to forecasting and valuation. Financial Accounting was developed by leading Harvard Business School faculty and is delivered in an active learning environment based on the HBS signature case-based learning method.

What Financial Accounting course content changed with the 2021 updates?

+–

Starting with the October 2021 wave, we have added two new cases to Financial Accounting: Mahindra Finance in Module 4 and Estee Lauder in Module 7. The Mahindra Finance case covers credit risk management, and the Estee Lauder case introduces lease accounting and the impact of recent changes in lease accounting standards. Professor Narayanan discusses the new material in this video. To accommodate the new material, some of the exercises related to forecasting and valuation in Module 7 will be optional starting with the October 2021 wave.

 

Related Courses

3 Courses

Credential of Readiness (CORe)

Designed to help you achieve fluency in the language of business, CORe is a business fundamentals program that combines Business Analytics, Economics for Managers, and Financial Accounting with a final exam.

10-17 weeks, 8-15 hrs/week
Apply by May 15
$2,500Credential 

Leading with Finance

Professor Mihir Desai

Build an intuitive understanding of finance to better communicate with key stakeholders and grow your career.

6 weeks, 6–7 hrs/week
Apply by May 15
$1,750Certificate 

Economics for Managers

Professor Bharat Anand

See the world through the lens of economics and gain the knowledge and skills to craft successful business strategy.

8 weeks, 6-8 hrs/week
Apply by May 15
$1,750Certificate 
 
All FAQs

Top FAQs

How are HBS Online courses delivered?

+–

We offer self-paced programs (with weekly deadlines) on the HBS Online course platform.

Our platform features short, highly produced videos of HBS faculty and guest business experts, interactive graphs and exercises, cold calls to keep you engaged, and opportunities to contribute to a vibrant online community.

Are HBS Online programs available in languages other than English?

+–

We expect to offer our courses in additional languages in the future but, at this time, HBS Online can only be provided in English.

All course content is delivered in written English. Closed captioning in English is available for all videos. There are no live interactions during the course that requires the learner to speak English. Written English proficiency should suffice.

Do I need to come to campus to participate in HBS Online programs?

+–

No, all of our programs are 100 percent online, and available to participants regardless of their location.

How do I enroll in a course?

+–

All programs require the completion of a brief application. The applications vary slightly from program to program, but all ask for some personal background information. You can apply for and enroll in programs here. If you are new to HBS Online, you will be required to set up an account before starting an application for the program of your choice.

Our easy online application is free, and no special documentation is required. All applicants must be at least 18 years of age, proficient in English, and committed to learning and engaging with fellow participants throughout the program.

After submitting your application, you should receive an email confirmation from HBS Online. If you do not receive this email, please check your junk email folders and double-check your account to make sure the application was successfully submitted.

Updates to your application and enrollment status will be shown on your Dashboard. We confirm enrollment eligibility within one week of your application.

Does Harvard Business School Online offer an online MBA?

+–

No, Harvard Business School Online offers business certificate programs.

What are my payment options?

+–

We accept payments via credit card, wire transfer, Western Union, and (when available) bank loan. Some candidates may qualify for scholarships or financial aid, which will be credited against the Program Fee once eligibility is determined. Please refer to the Payment & Financial Aid page for further information.

We also allow you to split your payment across 2 separate credit card transactions or send a payment link email to another person on your behalf. If splitting your payment into 2 transactions, a minimum payment of $350 is required for the first transaction.

In all cases, net Program Fees must be paid in full (in US Dollars) to complete registration.

What are the policies for refunds and deferrals?

+–

After enrolling in a program, you may request a withdrawal with refund (minus a $100 nonrefundable enrollment fee) up until 24 hours after the start of your program. Please review the Program Policies page for more details on refunds and deferrals. If your employer has contracted with HBS Online for participation in a program, or if you elect to enroll in the undergraduate credit option of the Credential of Readiness (CORe) program, note that policies for these options may differ.

 

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