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1. Und...
Understanding financial statements

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12. Profit = Revenue – Expenses Above the line Department Focus Bottom
Li...
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26. If you slice open the trunk of a tree, you can read the story of each...
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41. Net Increase (Decrease) (3,700)www.evenanerd.com Copyright © 2013
Gen...
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Understanding financial-sta

  1. 1. Understanding financial statements Page 1 of 8 Connect your LinkedIn account to SlideShare to get the best of both worlds Connect× Search… • Upload • Browse • Go Pro • 00 • Email Like Save Like this presentation? Why not share! Embed • • • • Share Email by The Motley Fool • «‹›» • 1 • • • • /48 by Subagini Manivannan by Search Marketing ... by Michael King by Cyrus Shepard 5 Amazing Things You Can Do With 1 ...653 views by Brand Networks • 43 Tips for Killer Holiday Retail C...613 views by Sompong Yusoontorn 10 Things Given By The Remarkable L...381 views Effective presentation skills688 views Thinking Outside The Box With Your ...429 views How i Solved Not Provided1695 views How to Survive the Google Earthquak...1660 views http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013
  2. 2. Understanding financial statements Page 2 of 8 by Fit Small Business • • • • by Lemi Orhan Ergin by 500 Startups by 500 Startups by Marketo • Sales Tax Ultimate Guide280 views Best Practices in Exception Handling282 views Brand Design: What Few Startups Kno...406 views Designing for Habit-Formation: The ...431 views Dreamforce 2013 - Christine Nurnbe...437 views More Geni Whitehouse Business Planning 999 views Like 28 comments http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013
  3. 3. Understanding financial statements Page 3 of 8 26 Likes http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013
  4. 4. Understanding financial statements Page 4 of 8 More… Understanding financial statements Presentation Transcript 1. Understanding Financial Statements By Geni Whitehouse, CPA Countess of Communicationwww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 2. Sponsored by:Connect With Sage 3. Imagine your business is a tree.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 4. Imagine your business is a tree. A fruit-bearing tree.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 5. Imagine your business is a tree. A fruit-bearing tree. Like an apple tree.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 6. This is your business.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 7. The income statement measures the fruits of your business efforts.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 8. Like a tree, your business produces anannual yield...www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 9. ...that gets reset every year.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 10. The Income Statement starts at zero at the beginning of every year and measures the annual yield.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 11. Profit = Revenue – Expenses Above the linewww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013
  5. 5. Understanding financial statements Page 5 of 8 12. Profit = Revenue – Expenses Above the line Department Focus Bottom Linewww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 13. At the end of each year, www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 14. At the end of each year,net earnings (or Net Income) isadded to www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 15. At the end of each year,net earnings (or Net Income) isadded toRetained Earnings on theBalance Sheet. www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 16. At the end of each year,net earnings (or Net Income) isadded toRetained Earnings on theBalance Sheet. www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 17. The Balance Sheet is a picture in time.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 18. The Balance Sheet is a picture in time.It measures the cumulative result of yourbusiness efforts.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 19. The Balance Sheet is a picture in time.It measures the cumulative result of yourbusiness efforts.It sustains your businessover the long haul.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 20. A tree can not bear fruit without the support of a strong trunk.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 21. A tree can not bear fruit without the support of a strong trunk. A business can not produce annual Net Income without a solid Balance Sheet.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 22. The Balance Sheet measures what you own and what you owe.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 23. The Balance Sheet measures what you own and what you owe. What you own is called your Assets. What you owe is called your Liabilities.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 24. The equity section is the difference between the two. Assets – Liabilities = Equitywww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 25. The equity section is the difference between the two. Assets – Liabilities = Equity Equity approximates the net value of your business. Equity is sometimes called Net Worth.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013
  6. 6. Understanding financial statements Page 6 of 8 26. If you slice open the trunk of a tree, you can read the story of each year in its life.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 27. You will find lean years... ...with little or no Net Income.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 28. And strong years... ...with plentiful Net Income.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 29. Those rings are like the equity section of the Balance Sheet.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 30. Those rings are like the equity section of the Balance Sheet. Accumulated Retained Earnings = Equitywww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 31. Equity = Assets – Liabilitieswww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 32. Equity = Assets – Liabilities What you Ownwww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 33. Equity = Assets – Liabilities What you Own What you Owewww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 34. Equity = Assets – Liabilities What you Own What you Owe Accumulated Earningswww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 35. Without water, no tree can survive for long. No business can survive without cash.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 36. The Cash Flow Statement shows where the water went in your business.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 37. Income How much Statement cash was consumed by the Income Statement?www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 38. Income How much Statement cash was consumed by the Income Statement? How much cash Balance was consumed Sheet in growing the Balance Sheet?www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 39. The Cash Flow Statement connects the Income Statement to the Balance Sheet.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 40. The Cash Flow Statement connects the Income Statement to the Balance Sheet. “If I produced Net Income this year, where did the money go?” The answer is on the Statement of Cash Flows.www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013
  7. 7. Understanding financial statements Page 7 of 8 41. Net Increase (Decrease) (3,700)www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 42. Operating cash flow ... ...keeps the business running Net Increase (Decrease) (3,700)www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 43. Operating cash flow ... ...keeps the business running Net Increase (Decrease) (3,700)www.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 44. Income Statementwww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 45. Income Statement Balance Sheetwww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 46. Income Statement Success in business requires a Balance focus on all Sheet three financial statements. Statement of Cash Flowswww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter 47. Sponsored by:Connect With Sage 48. The End Concepts by Geni Whitehouse Even a Nerd Can Be Heard Artwork (if you can call it that) also by Geni Whitehouse. www.evenanerd.comwww.evenanerd.com Copyright © 2013 Geni Whitehouse @Evenanerd on Twitter Search • • • • Follow us on LinkedIn Follow us on Twitter Find us on Facebook Find us on Google+ • • • • • • • Learn About Us About Careers Our Blog Press Contact Us Help & Support • • • • • • • Using SlideShare SlideShare 101 Terms of Use Privacy Policy Copyright & DMCA Community Guidelines SlideShare on Mobile • • • • Pro & more Go PRO Enterprise Sales PRO Features • • • • • Developers & API Developers Section Developers Group Engineering Blog Blog Widgets © 2013 SlideShare Inc. All rights reserved. RSS Feed • ENGLISH ◦ English ◦ Français ◦ Español ◦ Deutsch http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013
  8. 8. Understanding financial statements Page 8 of 8 http://www.slideshare.net/evenanerd/understanding-financial-statements 11/22/2013

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