Money

Do you want to improve your accounting knowledge? Are you in charge of your business’s finances? In Financial Intelligence, Karen Berman and Joe Knight explain how to calculate important numbers that reflect your business’s profitability, efficiency, and potential to attract investors. They also discuss how to manage your working capital to increase how much cash your business keeps on hand. Read more to learn how to understand accounting better so your business’s finances can soar.

How can you measure a business’s profitability, efficiency, and investment potential? Why should you analyze your financial statements like investors? Karen Berman and Joe Knight discuss several key financial ratios that managers, investors, and analysts use to evaluate a company’s performance and financial health. Berman and Knight identify several important financial performance measures that indicate a company’s profitability, efficiency, and overall financial strength. Here’s how to use performance metrics to measure a company’s overall health.

What are the three main areas of cash flow for small businesses? What does a cash flow statement tell you that an income and balance sheet statement don’t? The income statement and the balance sheet give an overview of a business’s financial position, taking into account past and future revenue and expenses. On the other hand, the cash flow statement fleshes out the full picture of where a business stands in the present—and whether it can afford to pay its bills. Let’s look at how to interpret a cash flow statement.

What is a balance sheet for a business? What does a balance sheet tell you about a business’s finances that an income sheet can’t? The balance sheet provides a snapshot of a company’s financial position at a specific time. Karen Berman and Joe Knight explain how balance sheets present your business’s overall value, what kinds of assumptions underlie your balance numbers, and what the balance sheet reveals about your business that a simple income statement cannot. Continue reading to learn the three main sections of a balance sheet and how to read one.

What’s an income statement in business? How does an income statement track revenue? The first document any business owner needs to understand is the income statement. This shows whether your company is profitable. According to Financial Intelligence by Karen Berman and Joe Knight, an income statement requires careful interpretation. Keep reading to learn what an income statement tells you about your business’s financial health.