University of Technology Sydney

26832 Startup Finance and Accounting

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Business
Credit points: 3 cp

Subject level:

Postgraduate

Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

This subject develops finance and accounting knowledge and skills for entrepreneurs. The topics covered provide an understanding of key concepts and help plan and deliver financial management-related aspects of early-stage startups and small businesses. Students learn how to interpret financial statements, analyse financial performance, manage cash flows, as well as start-up metrics relevant for asset valuation and capital budgeting processes. Students also develop an understanding of how finance and accounting information is used to support strategic and operational decision making.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. Apply methods of internal and external value measurement, planning and control
2. Apply financial management methods related to capital budgeting, cash flow, cost of capital, and valuation
3. Synthesise finance and accounting information to make decisions in relation to start-up management
4. Assess and develop funding alternatives for early-stage startups

Contribution to the development of graduate attributes

This subject is designed to help students develop a suitable understanding of the relevant finance and accounting frameworks that are essential for establishing and running a start-up business by providing students with a foundational understanding of the accounting reporting system, and its use for internal and external decision making. Additionally, student understanding of start-up valuation, funding structure and other key attributes will aid candidates to better understand the skills needed to financially manage, grow and raise capital for start-ups

This subject contributes to the development of the following graduate attribute(s):

  • Professional and technical competence

Teaching and learning strategies

The subject is offered in blended learning mode during the short teaching periods of six weeks duration. The teaching and learning approach is a mix of online learning and in-class seminars typically scheduled over four evening seminars. Classes are based on blended and flipped learning approaches: students engage with learning materials (including papers, book extracts, videos, etc.) before attending seminars.

Seminars include guided critical discussion of learning materials, group work on contemporary case studies, scenarios, workshops, peer discussions and learning from students own professional experiences. Discussions and application of theory, case studies and best practices are supported by online learning and communication tools and the UTS learning management system.

Students are guided in understanding accounting and finance related issues and devising strategies and processes towards desired outcomes as they relate to their startup. Students also reflect on the effects of such strategies including relevant regulatory and ethical demands.

A formative assessment provides students with feedback to direct their self-study. Ongoing general and individual feedback will be provided throughout the subject via consultation seminars. A summative assessment provides feedback on students' comprehension and application of learning. Students also receive formal feedback on assessment tasks.

Students engage with a broad range of material, including relevant chapters in recommended books, videos, slide decks, practitioner literature, news articles, academic journal articles and online content. Each learning module contains a list of readings and background material provided in advance on UTS Canvas. Students are expected to review and engage with materials before attending the relevant class to stimulate in-class discussion and to explore how the content affects their startup enterprise.

Content (topics)

  • Financial statements
  • Financing alternatives and funding options
  • Key start-up financial ratios
  • Valuation
  • Incentive, ownership structures and exit strategies

Assessment

Assessment task 1: Quiz (Individual)*

Objective(s):

This addresses subject learning objective(s):

1 and 2

Weight: 40%
Length:

Students have an hour to complete each quiz.

Criteria:
  • Demonstrate an understanding of core finance and accounting concepts
  • Demonstrate the ability to construct accounting and finance calculations to address introductory level accounting and finance problems.

*Note: Late submission of the assessment task will not be marked and awarded a mark of zero.

Assessment task 2: Report (Individual)

Objective(s):

This addresses subject learning objective(s):

3 and 4

Weight: 60%
Length:

3,000 words

Criteria:
  • Application of accounting and finance concepts in a real-world scenario
  • Application of financial and non-financial information to make decisions
  • Evaluation of funding alternatives

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

References

Booth, L., Cleary, W. S., & Rakita, I. (2020). Introduction to corporate finance. John Wiley & Sons.

Bhimani, A. (2017). Financial management for technology start-ups: A handbook for growth. Kogan Page Publishers.

Clarke, E. A., & Wilson, M. (2018). Accounting: An Introduction to Principles and Practice 9ed. Cengage AU.

Datar, S. M., & Rajan, M. V. (2018). Horngren’s cost accounting: a managerial emphasis. Pearson.

Leach, J. Chris and Lelicher, Ronald W., Entrepreneurial Finance, South-Western (Cengage Learning), 7th edition. 2021 ISBN-978-0-357-44204-3.

Thomas, A., & Ward, A. M. (2019). EBOOK: Introduction to Financial Accounting, 9e. McGraw Hill.