Business Financials

For many vocational rehabilitation counselors, the financial aspects of self-employment can feel overwhelming or confusing. This series provides VRCs with a foundational understanding of key financial topics to ensure a VRC can identify critical details on financial statements to promote success. The first module in the series explains business owner earnings, the second module covers the basics of Profit and Loss statements, the third module covers Cash Flow statements, and the fourth module shows VRCs how to use financial statements to support a VR customer in achieving self-employment.

Counselors are encouraged to complete all four modules but have the option to complete one or the other.

Time: 1 hour per module (average)

CRCs: Up to 4 CRCs (1 per module)

Module 1: Business Owner Earnings

During this module, we'll explain earnings when a person is self-employed, as well as strategies for tracking those earnings. In the remaining modules, we'll build on this concept by explaining how you use financial projections to estimate earnings and financial statements to find actual earnings.

Learning Objectives

  1. Explain two ways business owners get earnings from the business.
  2. Understand how Net Earnings from Self-Employment (NESE) are calculated..
  3. Explain the difference between NESE and an owner's draw.
  4. Name at least one expert who can help a person choose the best option for business owner earnings.

To receive a certificate of completion or CRCs:

  1. Take the Pre-Test
  2. Complete the eLearning Module (download Navigating an eLearning Module for tips)
  3. Pass the Post-Test (score 100%, unlimited attempts)
  4. Complete the Module Evaluation

Estimated time to complete: 1 hour.

Enter Module 1

Module 2: Profit and Loss Statements

In this module, VRCs learn about a critical self-employment tool, the profit and loss statement (P&L). VRCs learn the purpose of the P&L and what goes in each section of the statement. VRCs will also learn how a P&L projection is developed and how to find a VR customer's net earnings from self-employment.

Learning Objectives

  1. Describe the purpose of Profit and Loss projections.
  2. Identify net profit on a Profit and Loss Statement.
  3. Use the Profit and Loss Statement to evaluate business health.

To receive a certificate of completion or CRCs:

  1. Take the Pre-Test
  2. Complete the eLearning Module (download Navigating an eLearning Module for tips)
  3. Pass the Post-Test (score 100%, unlimited attempts)
  4. Complete the Module Evaluation

Estimated time to complete: 1 hour.

Enter Module 2

Module 3: Cash Flow Statements

In this module, VRCs will learn the importance of the cash flow statement and how it supports a business owner to understand the financial health of the business. VRCs will also learn the elements of a cash flow statement, how to use projections and actual information for decision-making, and how this statement fits into the business plan as well as the launch of the business.

Learning Objectives

  1. Identify the components of a cash flow statement.
  2. Evaluate the impact of cash moving in and out of a business.
  3. Understand how cash slow statements work with other financial statements.
  4. Use the cash flow statement to anticipate funding needs.

To receive a certificate of completion or CRCs:

  1. Take the Pre-Test
  2. Complete the eLearning Module (download Navigating an eLearning Module for tips)
  3. Pass the Post-Test (score 100%, unlimited attempts)
  4. Complete the Module Evaluation

Estimated time to complete: 1 hour.

Enter Module 3

Module 4: Using Financial Statements

This module focuses on how VRCs can use Profit and Loss and Cash Flow statements to evaluate the viability and health of a business, identify a business owner's projected and actual earnings, and help a VR customer determine a plan for start-up funding. This module builds on concepts covered in the other modules in this series.

Learning Objectives

  1. Use projected profit and loss to determine the business's potential for profit..
  2. Use projected cash flow to determine start-up funding needs..
  3. Use a profit and loss statement to identify a VR customer's earnings.

To receive a certificate of completion or CRCs:

  1. Take the Pre-Test
  2. Complete the eLearning Module (download Navigating an eLearning Module for tips)
  3. Pass the Post-Test (score 100%, unlimited attempts)
  4. Complete the Module Evaluation

Estimated time to complete: 1 hour.

Enter Module 4