Many small businesses and new business owners are aware that financial statements exist. However, there is generally a mystique surrounding these statements. The purpose of this class is to inform participants about the basics of financial statements and the importance of them to their business.
Several topics will be covered, including: 1) What are the financial statements companies prepare and use? 2) Why do companies need them? 3) What are the elements of an Income Statement, Balance Sheet, and Cash Flow Statement? 4) How do companies prepare these statements? 5) How can the financial statements be used to manage your business? i.e., How to turn the financial statements from a burden to a business tool; 6) How do financial statements impact the valuation of your business? 7) Why is it so important to have “clean” and accurate financial statements? 8) What are ways to potentially increase the value of your company outside of just increasing sales?