Accounting All-in-One For Dummies

Chapter 5

Interpreting Your Financial Results as a Manager

In This Chapter

Determining which information is most relevant

Judging profit and earnings performance

Sizing up your business's cash position

Recognizing signs of trouble in a company's finances

As an owner or manager of a business, you have a bigger stake in its financial success than anyone else does. After all, if the business fails, you're out of a job. Part of your responsibility in overseeing the daily operations of your business is to keep your finger on the pulse of its financial health. The numbers reflect how successful your business is. The financial results may also raise red flags to let you know that you need to attend to a certain aspect of your business more carefully.

This chapter offers practical guidance and tips specifically for managers on how to glean important information and insights from your business's financial reports.

Non-accountants often say they don't read financial reports because they're ...