Business-Development & Planning

Understanding Financial Statements:What do they say about your business?

Do you want to be in financial control of your business?

Do you want to know how your "books" work?

Do you want to understand what your accountant tells you?

Do you want to know where to find answers in your financial statements?

 

If your answers are yes, we will help you find helpful information.

 

Owning a small business is the dream of many people. These people have their own ideas for a product or service to provide to the public or to other businesses, and many of these business people do a very good job of providing their product or service, but they do not do a good job of controlling the financial part of their business. It is simply too easy to devote all of your mental and physical energies to your customers and then do nothing for yourself.

 

You must understand that there is no "mystery" to understanding your business's financial make-up. The same common sense and logic that you apply to your daily operations will carry you through the steps you need to grasp the financial information. All that is necessary is for you to learn a few simple concepts. Master them, and you will no longer be uncomfortable with your business financial statements.

 

There are four levels in your business accounting system. They are:

 

THE FOUNDATION - SOURCE DOCUMENTS AND A FILING SYSTEM

 

THE INPUT LIST - TRANSACTION JOURNALS

 

THE CATEGORY LIST - GENERAL LEDGER

 

THE MANAGEMENT REPORT - FINANCIAL STATEMENTS

Tags

Voting

0 votes
Active
Idea No. 3