¿Hola, cómo es usted? or Bonjour, comment allez-vous ?

Can you read and understand either of these two phrases? 

If you can read and understand either phrase, you have most likely taken a class in Spanish or French during your school days.  Is it prudent for us to think we could understand either phrase without having some type of training in that language?  Most of us would say no.

Well, reading and understanding your company’s financial statements without having the proper training is just as difficult as trying to understand either of these two phrases without having the proper training. 

Most business owners launched their businesses in an area where they have a specific talent and often have years of experience practicing the technical aspect of that business.  But they may not have years of experience reading and analyzing Profit and Loss statements, Cash Flow statements, and Balance Sheets.  In order for owners and managers to make the best business decision for the future sustainability and growth of their businesses, they must understand their financial statements to the point they can read them and analyze what these statements are telling them about their business.  

It’s not unreasonable for business owners and managers to seek out the proper financial training in order to fully understand their financials, just like it is not unreasonable to seek out the proper training in order to fully understand a foreign language, even the simplest of phrases such as; “Hello, how are you?”

If you want to undersand your company’s financials fully, give us a call.  We can help.

Let us know what you think,

Take Care

This entry was posted on Wednesday, April 8th, 2009 at 5:40 am and is filed under Financial Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.