If you do not
sign up for the free financial statement course
continue below to find why you
must
 |
|
 |
|
Put in your name and e-mail to get this course
now
|
|
 |
|
 |
NYC understands
the importance of their financial statement
Do you know
why your financial
statement knowledge is essential...
Would you drive a car
without looking at the
dashboard?
Of course you would not want to put your life in the hands
of blind faith. This is exactly what a business owner does
if he can not read and understand financial statements.
Financial statements not only tell you where you business
has been and wether it has survived or thrived but also
where it is likely to be in the future.
So first and foremost financial statements are essential
tools for understanding and running your business, yet that
is not the only reason for them. The following true story
will illustrate how much ignorance of this practical
knowledge could cost you.
Let me tell you about my client
David. Before he came to me as a client, he had a Pharmacy at a
time when big competitors were coming in and starting to carve
out his market, and David would have been more than happy to
sell.
One day, a man walked in and
said, “I want to buy this place.” Now if someone comes in and
wants to buy your business, they usually make a generous offer
because they are looking to buy instead of you having to sell.
And a generous offer is what David got - an offer of $2
million. But the deal never went through. Why?
Because when the potential buyer
asked to see the previous year’s tax return, David happily
handed it over. (Now what you have to understand at this point
is, a tax return essentially combines and summarizes two parts
of a financial statement, your income statement and your
balance sheet.) This tell's anyone who reads it exactly how
much money you've been making and where it's been going.
If David had read and understood
his return, he would have never have handed it over, because
the buyer took one look and knew instantly that the balance
sheet was bogus - the return showed millions of dollars for
that year but an inventory of less than $10,000.
So the buyer looked at the
return, he nodded, told David, “I’ll get back to you,” and
left. David never heard from him again.
How could David have prevented
the collapse of this $2 million deal ?
Simple. If he had understood
that financial statements are the vital statistics of any
business, he would have known what his balance sheet
should have looked like. He would have
made sure that his financial statements were accurate. And he
would never have shown a bogus return to a potential buyer.
So what's the moral of the
story?
It's that ultimately,
you’re responsible for your own business
and its financial statements. It’s fine to rely on
someone else to prepare your financial statements,
but you should never rely on anyone else to
understand them for you.
Can you imagine a carpenter who
doesn’t know how to use the tools of his trade? He wouldn’t be
in business very long. Well, your financial statements are
crucial tool that show you what shape your business is in and
how to make it more profitable.
How can you expect your business
to survive and grow if you don’t understand or know how to use
the financial documents ( tax returns and financial statements)
that you’re paying your accountant or CPA to prepare?
I’ve spent the past 19 years
educating my clients about their business and the financial
reports that represent those businesses. Now you too can
benefit from my experience with my complimentary course on
financial records. In three straightforward lessons, you'll
learn the language of financial concepts and statements (it’s
all a lot simpler than you think) so you’ll feel in total
control of where your business is - and where you want it to
go.
Please fill in your name and
e-mail so I can send you this course now.
|
|
|
|
Put in your name and e-mail to get this course
now
|
|
|
|
|
| 