The Bottom Line
What do you see above?
Some of you may say “circle”, some others may describe it as the “moon”.
It’s all about perspective, don’t you agree?
The same is true with the world of numbers.
Engineers (like the author of this book) may look at numbers with a solution mindset, while those with a formal finance education or a traditional accounting background may view numbers with a compliance mindset.
Whichever way you look at numbers, there’s no shying away from them, especially if you are a business owner or a key decision-maker. For most business decisions are related to numbers.
Everyone needs to know how to interpret numbers! They help decision-makers make crucial decisions that impact the bottom line of their companies. Most often than not, these numbers are in the form of data.
Data is like crude oil. There is a wealth of information waiting to be filtered out.
The filtered information is ‘relevant information’ that makes all the difference between success and failure.
When this information is communicated through stories, it sparks a meaningful conversation.
That is what this book attempts to do. After reading this book, you will not just be able to understand numbers but you will also be able to analyse them and interpret the stories they are trying to tell you.
In short, you will be able to look at the circle and see the moon!
Fundamentals of Financial Statements
There are only 2 rules in business :
Rule #1 : Always make more money than you spend.
Rule #2 : Do not forget Rule #1.
To know if a business is making more money than it is spending, we have to know the numbers. And where do you think all those numbers will be recorded? Of course, on financial statements.
Unfortunately, many business owners find it hard to read and understand financial statements, and their accountant (not the one reading this) complicates it by using sophisticated jargaon and terminology.
Now you might be thinking there are hundreds of books on this subject, why one more book?? This book is written by a non-accountant using jargon free and user friendly language to make the subject of Finance, FUN to learn!