About Entrepreneurs: Using Financial Statements as Management Tools

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	from Scott Allen OK, we all know that we have to have those financial statements to present to lenders or as part of the business plan. But for those of us without a background in finance, we often treat them as nothing more than an item on those checklists. Fortunately, you don't have to have an MBA to turn those financial statements from a jumble of numbers into a useful management tool -- something with a little more depth than whether or not you're going to have money for next month's bills. This week we have a three-part series on how to interpret your basic financial statements and use them as a valuable planning tool.
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Interpreting the Balance Sheet The information provided here allows you to calculate several financial ratios that measure company performance. Additionally, current balance sheets should always present data from at least one previous period, so you can compare how financial performance has changed.             More Topics Presenting Financial Statements to a Lender What you'll need to have in hand Writing a Business Plan - Financial Projections What does the future hold financially? How to Do a Breakeven Analysis When will you go from red to black? Why Business Plans Don't Get Funded Common mistakes and how to avoid them Before You Apply for a Business Loan A checklist to speed the process Building Business Credit One way to improve your cash flow Cash (Flow) Really Is King The most important lesson about business Interpreting the Income Statement Like a balance statement, an income statement is a means for measuring a company's financial performance. Some of the ratios discussed draw data from both the income statement and the balance sheet.   Interpreting the Cash Flow Statement A cash flow statement, along with the balance sheet and income statement, are the three most common financial statements used to gauge a company's performance and overall health. The same accounting data is used in preparing all three statements, but each takes a company's pulse in a different area.     Sponsored Links   Celebrating Mom Mother's Day Ideas Celebrate Mom this month with great gift ideas, recipes, and much more.

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