In the next 3 articles of the series, I’m going to teach you tips on how to read financial statements. It’s vital for you to have a strong understanding of how your business is performing financially.

I have the opportunity to see how a business performs from two perspectives – from both the inside and the outside. As an investor, I’m on the outside looking in. I see if the company is financially sound, I learn about the business, I punch some numbers into my calculator and then I make an investment decision.

As a business manager, I’m active in the daily operations of my company. I feel the pain when we don’t collect our receivables, when our costs go up, and when our competition slashes their prices. Those things force me to make decisions that affect the financial performance of my company. As a manager, I’m in the fight instead of watching the fight.
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