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Understanding Finance

Working with numbers does not always come easily to entrepreneurs – that’s why it poses such a problem for small businesses trying to succeed. Unfortunately (and I’ve been known to do this myself), accounting and financial management can prove so confusing and complicated that some people prefer to bury their heads in the sand and ignore the issue altogether. The problem with ignoring finances is that you’re missing critical information for making smart choices in business. Understanding the difference between Profit and Cash Flow can make the difference between having a solvent business and not being able to pay your bills. Of course, there are trained professionals, CPA’s, CFO’s, etc. that are experts in Accounting and Financial Management available to assist you.

But we’ve all seen the stories in the news about how the numbers can be artfully worked to mislead. That’s why it is so important for entrepreneurs to develop their own “Financial Intelligence.” Having an understanding of the use of financial management empowers owners to take a critical look at financial statements and analyses. Knowing the language of finance helps you to communicate more effectively and ask pointed questions.

Financial Intelligence for Entrepreneurs provides an easy to grasp overview of “what the numbers really mean.” Simply put, it demystifies accounting and financial management so you can have a true understanding of the subject matter as it applies to your own business. As a result, you can be empowered to use financial information for making smart choices for your business and your team.

The good news is, you don’t have to be a CPA or CFO to understand the financials and use that knowledge to your advantage! One of the common myths that many people (myself included) hold is that numbers are completely objective. But as the authors explain in this book, there are a number of assumptions that financial managers and accountants make that impact the bottom line (a term I finally understand the meaning of).

For me, this book has been quite helpful as I have committed to improving my own financial proficiency for the success of my business. And while I might not ever geek out over the numbers like some people do, I don’t feel as though I am sitting in the corner with the dunce cap on anymore either. For those of you out there that get financials, this book might help you learn how to better explain things to the laymen.

Are the numbers stressing you out? We will help you get on track at the Sept. 13th EntrepreNerds Professional Development Workshop where we’ll be discussing Financial Intelligence for Entrepreneurs What You Really Need to Know About the Numbers. For more information or to sign up visit us online www.Meetup.com/EntrepreNerds.

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About the Author:

Understanding Finance

Ariana Friedlander is the Founder and Principal for Rosabella Consulting, LLC and has over nine years of experience working with small businesses, nonprofits and government agencies to create strategies for successful organizational growth. A dedicated life-long learner, she is also the Lead Facilitator for EntrepreNerds.

EntrepreNerds is a business book club for professionals and entrepreneurs who are committed to expanding their knowledge and skills through self-paced learning. Every month, EntrepreNerds participants read the assigned business book then come together for a guided discussion, facilitated to encourage experiential learning, so that participants may explore ways to actively incorporate what they read about into their daily routines and business practices.