This Workshop is FREE and sponsored by DECD. Preregistration is required.
Understanding financial statements is essential to understanding how well your business is doing. The workshop covers the basics of the balance sheet, income statement (P&L, operating statement, earnings report, etc.) and the statement of cash flows. If you are not monitoring, and understanding, your financial statements on a regular basis, you are not managing your business.
Your business plan will need a set of detailed financial projections; potential lenders or investors will insist upon it. This workshop provides the financial grounding you need to later develop the financial projections required in your business plan.
The balance sheet measures the long term health of the organization. Is your business getting stronger over time, or weaker? Are you monitoring your balance sheet for developing cash flow problems? Are you alert to indications of customer dissatisfaction? If not, you could be missing early signs of potential trouble.
The income statement monitors your business’ profitability and operating performance period over period. The income statement helps you determine if you are operating efficiently, relying on too much or too little on general and administrative support (overhead) or potentially underpricing the market. In effect, the P&L helps you measure your overall effectiveness as a manager.
The statement of cash flows can be the most important of the financial statements, particularly at start up, expansion or market contraction. The cash flow statement reconciles the balance sheet and the income statement to project available cash going forward. Cash – not profits – pays the bills. Do your company a favor, monitor your cash on a recurring basis.