The financial holy trinity that lead to success

What Is the difference between a balance sheet, income statement, and cash flow and why should you combine the three for the full picture of a company’s financials?

Ah Nah

‘I don’t understand! We have heaps of work to do, but we still have a huge cash flow problem every month?’

When I ask my client how they organise their financial statements, they start stuttering and tell me that they do have a balance sheet somewhere…….

Do you recognise this?

You are not the first entrepreneur who has a successful start-up or business that gets lost in the financial abracadabra of the financials.

Next level

Most of my clients are in some form of growth. Growth is the phase of sharpening your position in the market, hiring more people, thinking about your cash flow, savings, making short & long-term decisions.

It is all about reaching the next level for their business but the financial part of business is a core element that is often forgotten or neglected.

Do you invest in R&D and your performance in the P&L is low? Sometimes that’s a choice: we call that strategy.

I want to share some information about the financial basics that are vital to check the health of your business and how to get usable insights from the numbers.

Of course, I highly recommend working with a financial specialist. Still note that you need to know what you are talking about; you have to understand at least the basics yourself.

Really understanding you own financials

If you really want to know where your money is coming from and where it all goes you need to exactly know how you are pricing your products and services and how you’re spending your money.

Let me introduce to you the financial holy trinity:

1. the balance sheet

2. the income statement

3. the statement of cashflow

The balance sheet