This Element is an excerpt from The Truth About Starting a Business (9780137144501), by Bruce Barringer. Available in print and digital formats.
A simple introduction to financial management for every new entrepreneur.
Financial management asks questions like: How are we doing? Are we making or losing money? How much cash do we have? Will it meet our short-term obligations? How efficiently are we utilizing assets? How do our growth and net profits compare to peers? Where will capital improvement funds come from? Overall, are we in good shape financially?