Training Guide

Introduction to Financial Statements

Training Guide

Introduction to Financial Statements

Topic: Accounting & Finance
Duration: 1 hr
Format: Remote or in person

What’s Covered

The purpose of financial statements
Balance Sheets
Income Statements
Cash Flow Statements
Statements of Shareholders’ Equity
How transactions affect the financial statements

Before the Session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/trainings/introduction-to-financial-statements/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

Course

Introduction to Financial Statements

An introduction to the four main financial statements, with examples of how the statements are affected by different business transactions.
Exercise

Introduction to Financial Statements
PDF

During the Session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

What are some ways that companies use financial statements?
What are the four main financial statements?
What’s the balance sheet equation?
What does the income statement measure?
What does the cash flow statement show?
What does the statement of shareholders’ equity show?
How do financial statements for public companies differ from those of private companies?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
General practice tips (dos and don’ts)
Firm-specific guidance and practices

After the Session

To continue their learning, attendees can check out related courses in Hotshot’s Accounting & Finance topic.

About Hotshot

Hotshot helps lawyers develop their legal, business, and technology skills through short videos, quizzes, and summaries, and we help law firms and law schools plan and deliver engaging training programs. Our customers include Am Law 200 firms, top law schools, and regional and international firms.