Synopses & Reviews
Everyone interested in building a stronger business needs to understand and use the information captured in financial statements. In Managing by the Numbers, business education and accounting experts Chuck Kremer and Ron Rizzuto team up with open-book management authority John Case to demystify the numbers. They present a practical, common-sense approach to reading financial statements and to managing the three bottom lines of business financial performance: net profit, operating cash flow, and return on assets. The book features numerous exercises and examples (with associated templates available on the Web), a powerful new management tool known as The Financial Scoreboard,” and an extensive glossary. Managing by the Numbers is an essential resource for entrepreneurs, business owners, managers, and anyone eager to improve their mastery of the financial side of running a business.
The essential guide to understanding financial reports, for entrepreneurs, managers, and business owners
Do you get complete financial reports for your business at least once a month?
Do you understand what all those numbers mean?
Do you use the information in those reports to help you make smart decisions about your business?
If you answer "no" to any or all of these questions, then turn to Managing by the Numbers, a highly practical and accessible antidote to financial anxiety. Chuck Kremer, Ron Rizzuto, and John Case show you how to manage the three bottom lines of business financial performance -- net profit, operating cash flow, and return on assets -- and roll them into the "Financial Scoreboard" to see the big picture at a glance. Offering step-by-step examples and an extensive glossary of key terms and concepts, Managing by the Numbers is a commonsense guide to making those numbers work for you -- to monitor and measure performance, make smart decisions, and drive long-term growth. It is an essential resource for anyone eager to improve their mastery of the financial side of running a business.
Developed in partnership with Inc., a handy and practical guide to interpreting your companys financial statements to drive business growth and profitability.
About the Author
Chuck Kremer, CPA,
is Senior Business-Literacy Consultant for Boulder-based Educational Discoveries. An originator of The Financial Game for Decision Making™,” he teaches financial-literacy courses to managers and executives around the country.
Ron Rizzuto, PH.D., is a professor of finance at the University of Denver, where he co-founded the entrepreneurship program at the Daniels College of Business.
John Case is executive editor of the newsletter division at Harvard Business School Publishing. A former senior editor and senior writer for Inc. magazine, he is the author of numerous feature stories and several books on entrepreneurship and open-book management.
Table of Contents
List of tables and graphs -- Acknowledgments -- Introduction -- Pt. 1. All you really need to know about financial statements. 1. Two words on accounting ; 2. The balance sheet ; 3. The income statement ; 4. Cash flow -- Pt. 2. Understanding the big picture. 5. The three bottom lines ; 6. The financial scoreboard -- Pt. 3. Financial analysis to boost performance. 7. The three financial goals ; 8. Managing for optimum performance: net profit ; 9. Managing for optimum performance: operating cash flow ; 10. Managing for optimum performance: return on assets ; 11. Ratio magic ; 12. Forward-looking financials -- Epilogue -- Appendix 1. SOHO equipment: the complete financials -- Appendix 2. Tips on converting your company's financials to the financial scoreboard -- Appendix 3: Our (nonsacred) financial glossary and why you need a sacred one -- Appendix 4. A guide to ratios -- Appendix 5. A history of the Mobley matrix / by Louis B. Mobley -- About the authors.