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Financial Intelligence for Entrepreneurs : What You Really Need to Know About the Numbers - Karen Berman

Financial Intelligence for Entrepreneurs

What You Really Need to Know About the Numbers

Paperback Published: 9th September 2008
ISBN: 9781422119150
Number Of Pages: 304

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Using the groundbreaking formula they introduced in their book Financial Intelligence: A Manager's Guide to Knowing What the Numbers Really Mean, Karen Berman and Joe Knight present the essentials of finance specifically for entrepreneurial managers.

Drawing on their work training tens of thousands of people at leading organizations worldwide, the authors provide a deep understanding of the basics of financial management and measurement, along with hands-on activities to practice what you are reading. You'll discover:

Why the assumptions behind financial data matter
- What income statements, balance sheets, and cash flow statements really reveal
- How to use ratios to assess your venture's financial health
- How to calculate return on your investments in your enterprise
- Ways to use financial information to do your own job better
- How to instill financial intelligence throughout your team

Authoritative and accessible, Financial Intelligence for Entrepreneurs empowers you to "talk numbers" confidently with colleagues, partners, and employees-- and fully understand how to use financial data to make better decisions for your business.

Industry Reviews

"the best, clearest guides to the numbers that I know of." -- Inc. Magazine

Preface: What This Book Is Aboutp. xi
The Art of Finance (and Why It Matters)
What Is Financial Intelligence?p. 3
A Primer on the Art of Financep. 11
Part 1 Toolbox: Financing your business; Building a financial staffp. 19
The (Many) Peculiarities of the Income Statement
Profit Is an Estimatep. 25
Cracking the Code of the Income Statementp. 30
Revenue: The Issue Is Recognitionp. 38
Costs and Expenses: No Hard-and-Fast Rulesp. 43
The Many Forms of Profitp. 54
Part 2 Toolbox: Understanding variance; Calculating percent of and percent changep. 60
The Balance Sheet Reveals the Most
Understanding Balance Sheet Basicsp. 65
Assets: More Estimates and Assumptions (Except for Cash)p. 71
On the Other Side: Liabilities and Equityp. 81
Why the Balance Sheet Balancesp. 86
The Income Statement Affects the Balance Sheetp. 89
Part 3 Toolbox: Employees as assets; Expense vs. capital expenditurep. 94
Cash is King
Cash Is a Reality Checkp. 99
Profit [not equal] Cash (and You Need Both)p. 103
The Language of Cash Flowp. 110
How Cash Connects with Everything Elsep. 114
Why Cash Mattersp. 122
Part 4 Toolbox: Cash accounting; Free cash flowp. 125
Ratios: Learning what the Numbers are Really Telling You
The Power of Ratiosp. 129
Profitability Ratios: The Higher the Better (Mostly)p. 135
Leverage Ratios: The Balancing Actp. 141
Liquidity Ratios: Can We Pay Our Bills?p. 145
Efficiency Ratios: Making the Most of Your Assetsp. 148
Part 5 Toolbox: Which ratios are most important?; The power of percent of sales; Sustainable growth ratep. 154
How to Calculate (and Really Understand) Return on Investment
The Building Blocks of ROIp. 161
Figuring ROI: The Nitty-Grittyp. 168
Part 6 Toolbox: A step-by-step guide to analyzing capital expendituresp. 178
Applied Financial Intelligence: Working Capital Management
The Magic of Managing the Balance Sheetp. 183
Your Balance Sheet Leversp. 186
Homing In on Cash Conversionp. 191
Part 7 Toolbox: Working with your banker; Accounts receivable agingp. 195
Creating a Financially Intelligent Company
Financial Literacy, Transparency, and Your Business's Performancep. 199
Financial Literacy Strategiesp. 205
Putting Financial Intelligence to Work: Growing Your Businessp. 211
Part 8 Toolbox: Open-book management; Understanding Sarbanes-Oxleyp. 218
Sample Financialsp. 221
Exercises to Build Your Financial Intelligence-Income Statement; Balance Sheet; Cash Flow Statement; Ratiosp. 225
Under Armour and eBay Financial Statementsp. 255
Notesp. 263
Acknowledgmentsp. 265
Indexp. 269
About the Authorsp. 285
Table of Contents provided by Ingram. All Rights Reserved.

ISBN: 9781422119150
ISBN-10: 1422119157
Series: Harvard Financial Intelligence
Audience: General
Format: Paperback
Language: English
Number Of Pages: 304
Published: 9th September 2008
Publisher: Harvard Business Review Press
Country of Publication: US
Dimensions (cm): 23.4 x 15.8  x 2.54
Weight (kg): 0.39