Understanding Financial Statements
Understanding Your Financial Statements – Part 1 – Introduction. Are you a business owner that wants to understand your financial statements so that you can make informed decisions about your business? Start here.
The Profit and Loss Statement Explained
/in Business Essentials, Understanding Your Financial Statements/by michelle.adminUnderstanding Your Financial Statements – Part 2. Your P&L tells you how your business performed over a certain period. We look at the relationship between Revenue, Expenses and Profit…
The Balance Sheet Explained
/in Business Essentials, Understanding Your Financial Statements/by michelle.adminUnderstanding Your Financial Statements – Part 3. While the profit and loss statement tells you your business’s financial performance over a period, the balance sheet tells you your business’s financial position at one point in time…
Profits Explained
/in Business Essentials, Understanding Your Financial Statements/by michelle.adminUnderstanding Your Financial Statements – Part 4. Now that you understand the Balance Sheet and the Profit & Loss Statement, its time to look at how you can analyse your profit to get further insights and gain the knowledge to make informed business decisions…
Understanding Cashflow in a Business
/in Business Essentials, Understanding Your Financial Statements/by michelle.adminUnderstanding Your Financial Statements – Part 5. Cashflow management is just as important as profitability. When businesses fail, they are often profitable but still run out of cash, unable to pay their bills. Here are the key ratio’s you need to know…
Business Finance Explained
/in Business Essentials, Understanding Your Financial Statements/by michelle.adminUnderstanding Your Financial Statements – Part 6. To grow your investment, you have to think like an investor, and not just a business manager. Understand risk vs reward, the value of your business, learn three steps to generating a return on equity…
How to Compare Financial Results
/in Business Essentials, Understanding Your Financial Statements/by michelle.adminUnderstanding Your Financial Statements – Part 7. Learning how to compare financial results will allow you to make meaningful comparisons. The key is choosing the measures which have the biggest impact for your business.
Limitations of Financial Statements
/in Business Essentials, Understanding Your Financial Statements/by michelle.adminUnderstanding Your Financial Statements – Part 8. Financial statements provide very valuable insights, but they are not perfect and do not tell you everything. In this final article, we look at 8 limitations of financial statements, and where to go from here to dig deeper for business improving information.