What do the Numbers Mean?

Description: This is an intensive lesson and covers many areas of financial statements and analysis. It includes cash management, cost analysis, growth analysis and provides many practical examples and templates.

Why Participate in this Lesson?

If you want to increase your knowledge and understanding of the financial aspect of the business, if you want to better manage the numbers, increase cash flow, grow, and reduce your chances of loss, this lesson is a MUST! If you are satisfied with the outcome of your annual reports, then this lesson will help to explain why you have been successful.  It will provide some additional insights to increase your worth, profitability, and cash flow.
  • Understand how to read and analyze a balance sheet and profit & loss statement.
  • Learn about the different methods to use and interpret the numbers.
  • Learn the differences between balance sheets, income statements and statements of cash flow and how they interact.
  • Know if you are really making a profit.
  • Understand the real cost of your products/services.
  • Learn about how costs behave and the different types of costs.
  • Understand the difference between profit and cash.
  • Understand why you are running out of cash when you are making a profit.
  • Learn how much revenue it takes to cover all your expenses.
  • Learn how to determine the profit of the next dollar of income.
  • Learn how to keep good records for a business.
  • What it takes to grow a business.

Value of this training module: The lessons and topics included in this training include:

  • What the numbers mean

    • Starting at the beginning-What are financial statements?
    • Using financial statements to analyze data for decision making
    • Illustration of integrated financial statements
    • How are you keeping your records?
  • Managing cash through different cycles

    • Where did the CASH go?
    • Cash conversion and operating cycle-How to manage and understand them
    • Risks of cash management
    • Working Capital -truth or myth?
    • Inventory turnover and profitability
    • Price changes and how they affect profits and cash
  • Cash management resources

    • Why cash increases and decreases
    • Cash analysis templates
    • Find hidden cash templates
  • Are you covering all your costs?

    • Behavior of Costs and Break-Even Analysis-How much business you need to cover all the costs
  • Cash Flow Cycle-Inventory Management-Pricing
    • Markup vs. Margin- Is there a difference
    • Pricing processes and methods-how discounting and price increases affect the net income
  • Is your company positioned for growth?

    • Challenges of growing and running a small business
    • Getting real about growth-Planning for growth requires more resources-How to calculate the additional financial needs
    • Managing responsibility and growth in a family business
    • Additional Funds Needed (AFN) for growth


Knowing what the numbers mean is an important part of running a business.  If you are operating with misconceptions of costs, profits, and expenses, the business could be living in a fantasy world.  Generating more revenue at a price of spending more money than it takes to generate that income, inevitably will lead to a disaster and negative cash flow.  Knowing what information means is one thing but knowing how to apply the information is another.  This guidance will assist you in making better financial decisions.