Financial Analysis of a Social Enterprise

Chantier de l’économie sociale

Year: 2008

The theme of the “Financial Analysis of a Social Enterprise” workbook presents an analytical process specific to social enterprises (non-profits and co-ops) and is intended for financiers, analysts, coaches, consultants and fund managers who want to have a better understanding of the special features of these enterprises and thus make an informed decision on financing.


  • Review the usefulness of conventional financial statements.
  • Increase the chances of success of social enterprises and improve their access to financing.
  • Learn the principle of adjustment of financial statements of social enterprises.

Prerequisite: the participant must have a proven knowledge of accounting logic and be able to understand the conventional financial statements of a non-profit or a co-op.

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Table of Contents:

1. Introduction
2. Social Economy in Québec – Definition

3. Workbook’s goals
4. The Financial Statements of a Social Enterprise
     4.1 Importance of the financial statements
     4.2 Cautionary note on the contents of the financial statements
     4.3 Presentation of the financial statements
     4.4 Management’s analysis report: social balance sheet

5. Interpretation and Analysis of the Financial Position of a Social Enterprise
     5.1 Basis of financial analysis
     5.2 Prudent interpretation of ratios
     5.3 Adjustment of the financial statements
     5.4 Analysis of the adjusted financial statements by key ratios
     5.5 Assessment of capacity to meet its financial commitments
     5.6 Summary of the financial analysis

6. Financial Planning and Appropriate Financing
     6.1 Main funding sources
     6.2 How to assess financial needs

7. Monitoring Chart
     7.1 Definition of a monitoring chart
     7.2 Usefulness of the monitoring chart for the enterprise
     7.3 Importance of overall tracking
     7.4 Implementing a monitoring chart

See Also

Social Enterprises Analytical Model:
How to establish a profile to make an investment decision and assist in the development of a project, taking into consideration all the special features of a social enterprise