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Accounting for the Numberphobic

Book Description

Why do so many business owners dread looking at the numbers? They make excuses…They don’t have time…That’s what the accountant is for....But the simple truth is that no one else will ever be as invested in their company as they are—and they need to take control.

As a small-business owner, financial statements are your most important tools—and if you don’t know how to read them and understand their implications, you cannot possibly steer your business successfully. Accounting for the Numberphobic demystifies your company’s financial dashboard: the Net Income Statement, Cash Flow Statement, and Balance Sheet. The book explains in plain English how each measurement reflects the overall health of your business—and impacts your decisions. You will discover:

How your Net Income Statement is the key to growing your profits • How to identify the break-even point that means your business is self-sustaining • Real-world advice on measuring and increasing cash flow • What the Balance Sheet reveals about your company’s worth • And more

Illustrated with case studies and packed with practical action steps, this indispensable guide will put your business on the path to profitability in no time.

Table of Contents

  1. Cover
  2. Title
  3. Copyright
  4. Contents
  5. Acknowledgments
  6. Introduction: Why You Need This Book
  7. 1 Your Financial Dashboard: The Net Income Statement, Cash Flow Statement, and Balance Sheet
    1. The Net Income Statement
    2. The Cash Flow Statement
    3. The Balance Sheet
    4. Key Takeaways
  8. 2 The Net Income Statement: The Key to Growing Your Profits
    1. Line Items on Your Net Income Statement
    2. Management Benchmarks
    3. Key Takeaways
  9. 3 Using Your Net Income Statement to Improve Profits: Driving with Your Eyes Open
    1. Driving Profits for Product Businesses
    2. Driving Profits for Service Businesses
    3. Key Takeaways
  10. 4 The Breakeven Point: When Your Business Is Truly Self-Sustaining
    1. Why the Breakeven Point Matters
    2. How to Discover the Breakeven Point
    3. It Takes Time to Reach the Breakeven Point
    4. Marketing Expenses Can Help or Hinder
    5. Staying At or Above Your Breakeven Point
    6. Key Takeaways
  11. 5 Your Cash Flow Statement Is Speaking: Can You Hear It?
    1. Why Cash Flow Is Important
    2. Net Revenue and Cash Are Not the Same Thing
    3. How the Cash Flow Statement Works
    4. Budgeting Cash the Easy Way
    5. Cash-Burning Traps to Avoid
    6. Key Takeaways
  12. 6 Managing Your Cash Flow: More Is Better
    1. Managing Your Cash Inflow
    2. Managing Your Cash Outflow
    3. Key Takeaways
  13. 7 What’s Your Company Worth? The Balance Sheet Holds the Secret
    1. What the Balance Sheet Reveals
    2. The Three Sections of the Balance Sheet
    3. Key Takeaways
  14. 8 The Balance Sheet in Action: How to Win Friends and Influence Bankers
    1. What the Balance Sheet Numbers Reveal
    2. How to Improve Your Balance Sheet
    3. How a Bank Evaluates a Business
    4. Duration of a Loan and the Role of Collateral
    5. Eight Myths About Dealing with Banks
    6. Key Takeaways
  15. 9 Putting It All Together: Your Financial Dashboard in Real Time
    1. Basic Business Transactions
    2. Ratios and Percentages Help Find the Patterns
    3. Key Takeaways
  16. 10 Numbers Make the Business: An Interview with Norm Brodsky
    1. Inside the Mind of Norm Brodsky
    2. Key Takeaways
  17. Glossary
  18. Index
  19. About the Author
  20. Best-Sellers from AMACOM
  21. Free Sample Chapter from The Essentials of Finance and Accounting for Nonfinancial Managers, Second Edition