Financial Intelligence for Entrepreneurs - Karen Berman and Joe Knight
By Josh Kaufman
Finance can be an intimidating topic. It’s easy to feel like the subject is too arcane and complicated to understand, and it’s very tempting to leave it to the finance professionals and accountants.
That’s a mistake. If you want to understand how a business really operates, you must understand the basics of finance. Fortunately, it’s easier than you think.
Financial Intelligence for Entrepreneurs is a straightforward primer on finance and accounting for small business owners. Berman and Knight have a knack for explaining the nuances of finance and accounting in a friendly, approachable manner without glossing over vital information.
Financial Intelligence for Entrepreneurs covers the core topics in modern finance: the income statement, the balance sheet, the cash flow statement, the matching principle, depreciation and amortization, and important financial ratios. Also included is a detailed but easy-to-understand explanation of why each topic is important, how each statement and ratio is constructed, and (crucially) the implicit assumptions used in each tool, which can mislead the unwary or uninformed.
Financial Intelligence for Entrepreneurs is the second edition of this book; the original Financial Intelligence was written for non-financial corporate managers who wanted to understand their company’s financial statements and processes. Both books include the same case studies and core material: the only difference is in the framing of the explanations. I’ve read both versions, and for Personal MBA readers, I recommend Financial Intelligence for Entrepreneurs.
I’ve taken many finance courses, and I’ve read many books on finance and accounting. Financial Intelligence for Entrepreneurs is easily among the best introductory finance resources available for entrepreneurs.
Special thanks to Todd Sattersten for recommending this book.
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