Tag Archives: small business financial statements

Financial Statements Demystified

Small business financial statements are usually the last thing a new business owner worries about—and yet—they are one of the most important tools available for managing a small business.

Every successful small business creates financial statements in one form or another, and all too many businesses don’t use this information to full advantage.

Actually, they are generally a mystery to the new small business owner.


That is why I wrote a small book titled Small Business Financial Statements: What They Are, How to Understand Them, and How to Use Them. This book is one of my Primer Series books and is written specifically for the aspiring entrepreneur and new small business owner. If you want more information right now, you can click here.


If you are an accountant—don’t bother reading this book, because you will only write to tell me I have not used the proper accounting nomenclature and verbiage to explain financial statements. I admit to that discretion right up front, because it was deliberate.

This is not a book for accountants. This book was written for entrepreneurs who want to know more about the use of financial statements—not how to prepare them in accordance with “Generally Accepted Accounting Principles” (GAAP). Sadly, the two purposes are worlds apart for small businesses.

That is not to say that your financial statements should not be properly prepared—they must be!

But, even when business owners have properly prepared financials in hand, they still seem to have many questions about what to do with them.

Here is a sample of some of the questions I receive regularly from entrepreneurs:

  • What are Financial Statements—really?
  • Do I actually need them?
  • Who usually prepares them?
  • Why are they so difficult to understand?
  • How can I use them in my business?
  • What are Pro forma Financial Statements?
  • What is an “audit?”
  • Where can I see sample Financial Statements?

With these questions coming up over and over, it appears that our accounting community doesn’t do a very good job of counseling entrepreneurs and new business owners about their financial statements.

However, with this book you should find information you need, to answer many of your own questions about your small business financial statements … plus, you will find some guidelines that may help you better use your statements to manage your business.

So, if small business financial statements are a mystery to you—or if you’re just unsure of how best to utilize them—you should take a look at this book.

To see a sample excerpt of what’s in the book, take a look at Amazon’s “Look Inside,” click here.

If you would just like more information about this book, click here.