Summary

Synopsis

Learning how to interpret and use basic financial information is critical to the success of your small business. Discover how to use financial statements when buying, opening, and/or expanding a business.

Objectives

• Determine your personal financial obligations
• Relate your personal finances to your business finances
• Identify the ways that financial statements can indicate the financial status of your business
• Interpret a simple balance sheet
• List the four components of an income statement
• Name the uses of a cash flow statement
• Develop your own basic financial statements

Outline

• Acknowledgement
• Introduction
• Overview
• Objectives
• Your Personal Financial Situation
• Your Net Worth
• Personal Balance Sheet
• Considering the Business
• Determining Personal Obligations
• Estimating Expenses
• Personal Cash Flow Statement
• Checkpoint I
• Business Finance Basics
• Types of Financial Statements
• Types of Financial Transactions
• Your Balance Sheet
• Assets
• Liabilities
• Owner’s Equity
• Business Balance Sheet
• Checkpoint II
• Your Income Statement
• Uses
• Components
• Understanding the Income Statement
• Your Cash Flow Statement
• Inflow and Outflow
• Critical Components
• Reflecting Your Position
• Developing a Projected Cash Flow Statement
• Understanding the Projected Cash Flow Statement
• Prosperous Conclusions
• Final Checkpoint