Brian Feroldi on LinkedIn: Financial Statements: Explained To A Child If you're in business, you… | 26 comments (2024)

If your solution help the customers to achieve their financial goals then be prepare to explain them how. Most sales people know about their products but only a few can explain the impact to the business. It can be the difference between you and your competition.

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Good way to describe Financial Statements.

This is a great infographic and shows the high level view of understanding financial statements. If you want to see how this applies directly to your company this link may be helpful: https://lnkd.in/g2Cy4Cg7

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Financial Statement

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Financial Statements: A Beginner's GuideIf you're in business, you MUST understand the 3 Financial Statements.Here's a quick overview:📄 INCOME STATEMENTMain sections:💰 REVENUE: Total Sales➖ COST OF GOODS SOLD: The cost to deliver the product or service💰 GROSS PROFIT: Revenue - Cost of Goods Sold➖ OPERATING EXPENSES: All Overhead Costs💰 OPERATING INCOME: Gross Profit - Operating Expenses➖ OTHER INCOME: Money earned that is not core to the business💰 PRE-TAX INCOME: Operating Income - Other Income➖ INCOME TAX: Taxes paid to Governments💰 NET INCOME: Pre-Tax Income - Income Tax🔢 SHARES OUTSTANDING: The total number of shares a company has➗ EARNINGS PER SHARE: Net Income / Shares Outstanding👉 PURPOSE: Track Income & Expenses🔀 SIMILAR TO: Your Monthly Budget⏰ TIME: Period of Time🔢 ACCOUNTING: Accrual📄 𝐁𝐀𝐋𝐀𝐍𝐂𝐄 𝐒𝐇𝐄𝐄𝐓3 Main Sections:💰 ASSETS: What the company Owns🔴 LIABILITIES: What the company Owes to creditors🔵 EQUITY: The net value of the owner's claim➗ FORMULA: Assets = Liabilities + Shareholder's Equity👉 PURPOSE: Track what a company OWNS (assets) and OWES (liabilities)🔀 SIMILAR TO: Your Net Worth statement⏰ TIME: Point in Time Snapshot🔢 ACCOUNTING: Accrual📄 𝐂𝐀𝐒𝐇 𝐅𝐋𝐎𝐖 STATEMENT3 Main sections:💰 CASH FROM OPERATING ACTIVITIESAll of the cash flows from activities related to operating the business💰 CASH FROM INVESTING ACTIVITIESThe cash movements from long-term assets💰 CASH FROM FINANCING ACTIVITIESThe cash from all equity investments and debt from the company👉 PURPOSE: Track Cash Movements🔀 SIMILAR TO: Your Checking Account⏰ TIME: Period of Time🔢 ACCOUNTING: CashWhat questions do you have about financial statements? Let me know in the comments section below and I'll answer as many as I can.***P.S. Want to go deeper into analyzing financial statements? Join me for a FREE webinar on 12/19/2023: The Investor's Guide To Financial Statements. RSVP here (it's free!):https://lnkd.in/etqqtJq7If this post was helpful, please repost ♻️ to make LinkedIn a better platform for all.

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The 'Similar To' comparison is helpful.#financeeducation #accountingstudent #basics #businessanalytics #financejourney #moneyconversations #mbafinance #cheatsheet #learningtools

For any accounting or finance majors, I'd recommend following Brian Feroldi on LinkedIn. He does a great job providing visuals on how to make sense of accounting concepts.His visuals would also be a great resource to any accounting professionals who often communicate accounting concepts to non-accountants.#wicpa #accounting #aicpa #businesseducation

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know about basic accounting...

Financial Statements: A Beginner's GuideIf you're in business, you MUST understand the 3 Financial Statements.Here's a quick overview:📄 INCOME STATEMENTMain sections:💰 REVENUE: Total Sales➖ COST OF GOODS SOLD: The cost to deliver the product or service💰 GROSS PROFIT: Revenue - Cost of Goods Sold➖ OPERATING EXPENSES: All Overhead Costs💰 OPERATING INCOME: Gross Profit - Operating Expenses➖ OTHER INCOME: Money earned that is not core to the business💰 PRE-TAX INCOME: Operating Income - Other Income➖ INCOME TAX: Taxes paid to Governments💰 NET INCOME: Pre-Tax Income - Income Tax🔢 SHARES OUTSTANDING: The total number of shares a company has➗ EARNINGS PER SHARE: Net Income / Shares Outstanding👉 PURPOSE: Track Income & Expenses🔀 SIMILAR TO: Your Monthly Budget⏰ TIME: Period of Time🔢 ACCOUNTING: Accrual📄 𝐁𝐀𝐋𝐀𝐍𝐂𝐄 𝐒𝐇𝐄𝐄𝐓3 Main Sections:💰 ASSETS: What the company Owns🔴 LIABILITIES: What the company Owes to creditors🔵 EQUITY: The net value of the owner's claim➗ FORMULA: Assets = Liabilities + Shareholder's Equity👉 PURPOSE: Track what a company OWNS (assets) and OWES (liabilities)🔀 SIMILAR TO: Your Net Worth statement⏰ TIME: Point in Time Snapshot🔢 ACCOUNTING: Accrual📄 𝐂𝐀𝐒𝐇 𝐅𝐋𝐎𝐖 STATEMENT3 Main sections:💰 CASH FROM OPERATING ACTIVITIESAll of the cash flows from activities related to operating the business💰 CASH FROM INVESTING ACTIVITIESThe cash movements from long-term assets💰 CASH FROM FINANCING ACTIVITIESThe cash from all equity investments and debt from the company👉 PURPOSE: Track Cash Movements🔀 SIMILAR TO: Your Checking Account⏰ TIME: Period of Time🔢 ACCOUNTING: CashWhich questions do you have? Let me know in the comments section.***P.S. Want to go deeper into analyzing financial statements? Join me for a FREE webinar on how to analyze unprofitable business. RSVP here: https://lnkd.in/eMeJWmPS➕ Follow me Brian Feroldi. I demystify the stock market.If you found this post useful, please share (repost ♻️) to help make LinkedIn a better platform for all.

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Understanding financial statements is crucial. Paired with the right software, you can truly be in command of your business finances. 💼📊#CorpScriptERP #ERPInsights #BusinessSolutions #DigitalTransformation #ERPIntegration #FinancialManagement #EnterpriseTech #OperationalEfficiency #BusinessAutomation #TechInnovation

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