About this course
Applies core accounting principles to the business of microfinance. Delegates work through entries for loan disbursements and repayments, interest and fee income recognition, loan loss provisioning and write-offs, savings and deposit accounts, and the preparation of financial statements for a microfinance institution. Portfolio quality and performance ratios such as portfolio at risk, operational self-sufficiency and yield on portfolio are linked back to the accounts.
Why this course
Microfinance institutions process high volumes of small loans, which makes accurate portfolio accounting and provisioning hard to get right. Weak records distort profitability, hide portfolio problems and cause difficulties with regulators, lenders and investors. Staff who apply consistent principles produce reliable statements and ratios that support funding applications and supervisory returns.
What delegates will be able to do
By the end of the course, delegates will be able to
- Record loan disbursements, repayments, interest, fees and write-offs correctly
- Calculate loan loss provisions from portfolio ageing information
- Prepare a statement of financial position and income statement for a microfinance institution
- Calculate and interpret portfolio at risk, yield and self-sufficiency ratios
- Reconcile the loan portfolio system with the general ledger
Who should attend
Accountants, finance officers, branch managers, credit supervisors and internal auditors in microfinance institutions, savings and credit cooperatives and development finance schemes. Regulators' staff who review microfinance returns will also benefit. Basic bookkeeping knowledge is assumed.
How it is delivered
Practical sessions built around a model microfinance institution, with journal exercises, provisioning calculations and ratio analysis in Excel using realistic portfolio data. It is available as a public course, in-house at your premises, or as live virtual sessions. Duration and dates are confirmed in your quote, and in-house groups can have the examples and exercises fitted to their organisation.