No matter what work you do…no matter what your job description…it is important for every business person to be able to understand certain financial documents and reports. Otherwise, you are blind to the overall health and well-being of your company.
And, if you are a business owner, they are indispensable. The top three to understand are:
- Income Statement – Are we profitable?
- Balance Sheet – What is our net worth?
- Statement of Cash Flow – Do we have any cash?
These three financial documents are the foundation of every business, every non-profit, and can even be used to assess the financial situation of your household.
If these documents are unfamiliar to you…then follow these links and take the time to understand what they contain. And, search for any of the hundreds of web sites that try to explain them in laymen terms.
You will discover a whole new understanding of how your company operates.
Thanks for listening.