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This course is part of the Finance & Accounting track.
Financial Accounting
Balance sheet showing assets and liabilities

Financial Accounting

Discover What's Behind the Numbers in Financial Statements

Financial Accounting teaches key accounting concepts and principles to illuminate financial statements and unlock critical insights into business performance and potential. Explore how managers, Wall Street analysts, and entrepreneurs leverage accounting to drive strategic decision-making.

Apply Now

What You'll Learn

Play an Introduction to Financial Accounting video
Play an Introduction to Financial Accounting video
Go to Course Syllabus
  • 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

About the Professor

Professor V.G. Narayanan - Financial Accounting

V.G. Narayanan is the Thomas D. Casserly, Jr. Professor of Business Administration at Harvard Business School and chair of the MBA program’s second-year elective curriculum. He has served as the course head for the first-year required accounting course for MBA students, Financial Reporting and Control, and chairs several executive education programs. His research in management accounting focuses on understanding how firms can use incentives and feedback to improve performance.

Who Will Benefit

Graduation Cap

College Students and
Recent Graduates

Learn the language of business through accounting as you gain the skills and knowledge to analyze financial statements.

School

Those Considering an MBA

Prepare for the MBA classroom with the program Harvard Business School offers to incoming students.

Briefcase

Mid-Career Professionals

Gain confidence in your ability to understand financial statements and communicate financial results.

Program Structure

Financial Accounting consists of approximately 60 hours of material delivered over an eight-week period. You can complete the coursework on your own time while meeting regular deadlines.

April 2023
  • Length: 8 Weeks
  • Program Dates: 4/19/23 - 6/14/23
  • Cost: $1,750
  • Scholarships available
  • Application Deadline: April 10
  • Detailed Calendar
  • Course Platform
  • Certificate Program
Apply Now
June 2023
  • Length: 8 Weeks
  • Program Dates: 6/21/23 - 8/16/23
  • Cost: $1,750
  • Scholarships available
  • Application Deadline: June 12
  • Detailed Calendar
  • Course Platform
  • Certificate Program
Apply Now

Financial Accounting is part of the Finance & Accounting Learning Track. If you’re interested in developing deeper insights and expertise, you can choose to complete three finance & accounting courses within 18 months to earn a Certificate of Specialization.

This course is also part of our three-course Credential of Readiness (CORe) program—consisting of Business Analytics, Economics for Managers, and Financial Accounting—available for $2,250.

Interested in mastering business essentials in CORe?

Learn More

Note: Participants that enroll in the Financial Accounting course are not eligible to enroll in the CORe program. And if enrolling in the CORe program, participants are not eligible to enroll separately in the Financial Accounting course.

Syllabus

Financial Accounting will teach you the fundamentals of financial accounting from the ground up. You will learn how to prepare a balance sheet, income statement, and cash flow statement, analyze financial statements, and calculate and interpret critical ratios. You will also learn the role of managerial judgment in choosing accounting estimates and methods. The course concludes with an introduction to forecasting and valuation.

New cases: Starting with the October 2021 wave, Financial Accounting includes two new cases: 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.

Learning requirements: In order to earn a Certificate of Completion, participants must thoughtfully complete all 7 modules, including satisfactory completion of associated quizzes, by stated deadlines.

Download Syllabus

Modules Case Studies Takeaways Key Exercises
Module 1: The Accounting Equation
  • Cardullo's Gourmet Shoppe
  • Apple Inc.
  • Bikram Yoga Natick
  • Understand key accounting concepts, terms, and principles
  • Demonstrate how different transactions impact the accounting equation
  • Quiz
Module 2: Recording Transactions
  • Cardullo's Gourmet Shoppe
  • Bikram Yoga Natick
  • Understand where financial statement information originates
  • Record business transactions as journal entries
  • Construct a trial balance
  • Quiz
Module 3: Financial Statements
  • Hipzone
  • Green Mountain Coffee Roasters
  • Understand the content and purpose of the income statement and balance sheet
  • See how the trial balance is used to create the balance sheet and income statement
  • Construct the balance sheet and income statement
  • Quiz
Module 4: Adjusting Journal Entries
  • PepsiCo
  • New Case (2021): Mahindra Finance
  • Understand complex accounting transactions and how they relate to accounting principles
  • Appreciate how to recognize, mitigate, and manage credit risks
  • Recognize the impact of judgment and bias on financial statements and accounting practices
  • Record advanced business transactions as journal entries
  • Quiz
Module 5: The Statement of Cash Flows
  • Morgan Stanley
  • American Red Cross
  • Understand how to construct and interpret the cash flow statement
  • Recognize the differences between GAAP and IFRS standards for cash flow statement creation
  • Use the statement of cash flows to evaluate the financial health and life-cycle stage of a business
  • Quiz
Module 6: Analyzing Financial Statements
  • Morgan Stanley
  • Evaluate company performance using profitability, efficiency, leverage, and other ratios
  • Analyze ratios and use the DuPont Framework to evaluate the financial state and strategy of a business
  • Team discussion
  • Quiz
Module 7: Accounting for the Future
  • Metropolis Healthcare
  • American Red Cross
  • New Case (2021): Estée Lauder
  • Use financial forecasting to predict future revenue, expenses, and cash flow
  • Understand key concepts and metrics in valuation, including time value of money, terminal value, net present value, internal rate of return, and payback period
  • Learn how companies account for leases—as a future obligation—and appreciate the impact of changes in lease accounting standards
  • Learn how to value a venture, project, or investment opportunity
  • Optional: Practice preparing pro-forma financial statements, calculating and forecasting free cash flows, and performing a sensitivity analysis in Excel
  • Quiz

The HBS Online Advantage

Play an Introduction to the HBS Online Platform video
Play an Introduction to the HBS Online Platform video
  • World-class faculty
  • Edge-of-your-seat online learning
  • Global peer collaboration and networking
  • Real-world, case-based learning

Harvard Business School Online offers a unique and highly engaging way to learn vital business concepts. Immerse yourself in real challenges faced by business leaders across a variety of industries. 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.

Play Participants share their experiences video
Play Participants share their experiences video

Stories from Our Learners

  • 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
  • Daily, I use the accounting principles succinctly enumerated by Professor Narayanan. I especially use what I learned in the volunteer work that I do as a board member for two nonprofit organizations.
    Richard Pitts,
    Chief Medical Officer


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Sign up to receive additional information about this course. Find out what other learners are doing with the skills they gained, and evaluate if this course is the right fit for you.

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Frequently Asked Questions

Do I have to log in at a set time? How does the grading process work? At this point, you probably have a few questions, and we’ve got answers.

Learn More

Learn More


application

Enrollment Eligibility

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 course. We confirm enrollment eligibility within one week of your application.

Apply Now

Apply Now


Financial Accounting Certificate of Completion from HBS Online
Earn Your Certificate

Enroll today in Harvard Business School Online's Financial Accounting course.

Apply Now
 
All FAQs

Top FAQs

How are HBS Online courses delivered?

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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.

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

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

How do I enroll in a course?

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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?

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No, Harvard Business School Online offers business certificate programs.

What are my payment options?

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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?

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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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