Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers

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Harvard Business Press, 2008 - Business & Economics - 284 pages
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.
 

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How many of you look forward to talking about numbers (really)?
The truth is that most entrepreneurs only have a very rudimentary understanding of finance. The problem is that having little or no
skill in gathering, organizing or interpreting your company’s finances can lead to less-than-perfect, and sometime disastrous, decision making.
That’s why we're constantly looking for tools and resources that breathe life into the “numbers side” of your business.
And, that’s why we’re so happy to have identified “Financial Intelligence for Entrepreneurs“. In http://BusinessCast.ca #98, Financial Intelligence, we interview co-author Joe Knight. He shares some nuggets but, perhaps more importantly he demonstrates his commitment to developing a truly practical resource.
What impressed me — and, I’m not a “numbers person” — is how well this book is written. It’s clear, concise and really, well…very human! Meaning, it doesn’t feel anything like a finance or accounting text book that speaks down to you. Nor is it so dry that you’re just aching to get to the end of the next paragraph.
The authors quite successfully convey fundamental and complex ideas in a way that you’d wish your CFO could! If you’re running a business and you’re the least bit uncomfortable with business numbers, read this book….and read it, now.
 

Contents

The Many Peculiarities of the Income Statement
23
The Balance Sheet Reveals the Most
63
Cash Is King
97
Ratios Learning What the Numbers Are Really Telling You
127
How to Calculate and Really Understand Return on Investment
159
Applied Financial Intelligence Working Capital Management
181
Creating a Financially Intelligence Company
197
Sample Financials
221
Exercises to Build Your Financial Intelligence
225
Under Armour and eBay Financial Statements
255
Notes
263
Acknowledgments
265
Index
269
About the Authors
285
Copyright

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About the author (2008)

Karen Berman and Joe Knight founded the Business Literacy Institute. They train managers at some of America's biggest and best-known companies. John Case has written or collaborated on several successful books. He has also written for Inc., Harvard Business Review, and other business publications.

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