Chapter 8
Reading the Financials
Financial Management
Attracting clients, adding assets, and generating revenue are how most financial advisors measure their financial success as practitioners. In reality, financial success is defined by profitability, strong cash flow, a healthy balance sheet, fair return for the owner, and value that's transferable. Unfortunately, many financial advisors are in the dark about these matters. The process so many financial advisory firms have in place for accounting is inadequate, and most practitioners have not been trained to use their financial data to effectively manage their businesses. But used properly, financial information can help owners and managers identify problems more quickly, recognize trends, ...
