Understanding financial statements could change your career
Everybody should have the ability to interpret and understand financial statements in their skillset.
Every employee contributes to a business in some way. Whether you fix the computers, design the advertisements or sell the products on the front line, your role is designed to help your employer achieve one main objective – make profit. Understanding a company’s financial statements will allow you take your career to the next level. Every contribution you make to aid the business achieve higher profits makes you more valuable to your employer. Perhaps the problem with your company is that their selling prices are too low. Perhaps it is turning its receivables into cash too slowly. Perhaps its wage expenses are too high or it’s spending all its cash on advertising when it should be paying off debt. You can be much more effective in your role when you understand the different factors affecting the business. All these issues can be uncovered by understanding a company’s financial statements. You can add value to your customers too. If you sell a product or service, understanding your customers business and being able to explain how you can contribute to their business is invaluable. Remember, the key objective of your clients is also to make profit. Understanding their financials connects you with them and their goals.- How a business ticks
- How it makes profit
- Where it spends its money
- Where it loses money
- Where it can improve
