How To Read Your Financial Statements

How to Read your Financial Statements:

Using Simple Approach

By Peter Adams

Copyright 2017 Peter Adams

Smashwords Edition

Smashwords Edition, License Notes

This eBook is licensed for your personal enjoyment only. This eBook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return toSmashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.

For further information, please feel free to contact me at:

Wealth Vision Mastery Academy,

15-19 Portland Street,

Lincoln, Lincolnshire, UK

Telephone/Fax – +44 704 560 1772

Email – [email protected]

Table of Contents

Introduction

Types of Financial Statements

Balance Sheet

Profit & Loss Statement

Cash Flow Statement

Attachments

Introduction

Small businesses are failing at an alarming rate due to the fact that they have no financial statements available to them to help them to be able to run their business. They have no idea on how much stock they have on hand, they do not know if they are making a profit or loss.

Preparation and understanding of Financial Statement have some great advantages which mean that your accountant will be happy (there will be no mess for him to fix) plus you have a better chance of obtaining finance should you be wishing to expand.

Please note that you do not have to have a degree in accounting to understand the financial statements or reports. These statements can be read and understood by anyone who is in business regardless of the type of business or business structure.

This book is designed to (a) encourage you to get an accounting package that will give you the desired financial statements and (b) how to read and understand the financial statements. There are various interpretations to the financial statements. Regardless of your business structure, the themes are similar. However, the larger companies have more complex financial statements which are more difficult to read and understand due to their various business arms that need to be consolidated. We will