On the last episode, we walked through some of the challenges that you may face if you don’t understand how to read and leverage your business financial statements, as well as some solutions. As you may have guessed, several of the solutions were using your financial statements.
So today we are going to start with the basics and introduce the 3 main financial statements (balance sheet, income statement and cashflow statement) and help you understand how to read them.
Episode Key Points
- Why understanding your personal finances is a good idea before starting a business
- What your cashflow statement is, along with some basic examples using a job and a paycheck
- The quote “cash is king” is true, but the timing of that cash coming in or going out is also critical
- What your income statement (aka profit and loss statement) is and some basic examples
- The difference between what people mean when they say “top line” and “bottom line”
- What your balance sheet is and a basic example to help you understand assets and liabilities
Links and Resources Mentioned in the Episode
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Transcript coming soon…