The New Manager’s Survival Guide: Everything You Need to Know to Succeed in the Corporate World

CHAPTER

4

MONEY IS NOT A FOREIGN LANGUAGE

After you read this chapter, you should be able to:

• Explain how money flows into and out of the company.
• Understand the purpose of each financial statement.
• Describe the concept of discounted cash flow.
• Define the financial planning techniques used for budgeting and forecasting.

Not everything that can be counted counts, and not everything that counts can be counted.

—ALBERT EINSTEIN

In my workshops, I often ask the question, “Who pays the bills in your family?” Inevitably, about 30 percent of the people raise their hand. Then I ask, “How many people like dealing with financial issues?” Not many people raise their hand. Regardless of whether you found yourself raising your hand as you read ...