The Agile Manager’s Guide To Understanding Financial Statements By Joseph Straub
Reading and preparing financial statements can be a task, but I found 'Understanding Financial Statements' useful because it explains all aspects of the financial statements in a way that's credible and Understandable
The back of the book also contains a glossary, and I believe it's a great addition, particulary for newbies
Some people may disapprove of this, but I like it because I believe it helps to relate to individual businesses situations, which makes it much easier to read
The Cost of goods sold account is sufficiently covered, which is of importance to manufacturers
With that being said, it's a great read and I would highly recommend it
I would suggest this book to anyone studying business, it’s incredibly useful! This was one of several books I read to help manage a small start-up company and I appreciate the depth of information. Reading and preparing financial statements can be a task, but I found ‘Understanding Financial Statements’ useful because it explains all aspects of the financial statements in a way that’s credible and Understandable. The back of the book also contains a glossary, and I believe it’s a great addition, particulary for newbies. I believe it’s a great piece-of-work because it doesn’t just scratch the surface. It’s awesome because it explains the financial statements, while explaining
the impact that different business scenarios can have on them. It’s only 97 pages, but it seems so much longer.
It’s a very well-written book! You’ll notice that the author’s tone is not too serious, which I believe is a plus. It contains huge amounts of business information, but you’ll also find side jokes and quips-most of them relating to business. Some people may disapprove of this, but I like it because I believe it helps to relate to individual businesses situations, which makes it much easier to read. Throughout the text the author also provides the “best tip” on the side of most pages. I believe
they’re a great addition because they essentially tell the reader why certain information is important and how to use it in real business situations.
Financial statements will vary depending on the business type, specifically the income and cash flow statements. I don’t believe the income and cash flow statements could have been explained better. The income statements are not skewed towards a specific business. FYI, the statement accounts are for many different businesses. I believe it’s sufficient because you’ll find it useful for service, manufacturing and retail businesses. The “Cost of goods sold” account is sufficiently covered, which is of importance to manufacturers. With that ...
being said, I believe more focus should have been paid to cash-based accounting. The majority of the information is about accrual accounting, which tends to be the method used by larger companies. If you use cash-based accounting, you’ll still find it useful, but I believe there could be more. There could also be more on basic bookkeeping such as inventory tracking and receipts.
Many elements of the book are focused on determining the financial condition of a business, which is quite helpful. However, whether good or bad, most of it is about public companies, specifically companies with stock. If you’re interested in buying stock this may be of interest, but this wasn’t my intended purpose for the book. If you have a small company, stock value probably won’t be of interest to you, so I believe more on the financial conditions of small businesses would be helpful.
Although I’m a huge fan, if I had to mention one small complaint, I would say that there are not enough statement examples in the book. You’ll find about ten examples of financial statements, but I believe there should be more fictitious statements, specifically based on the business type. I don’t believe it’s a big deal, but it’s worth mentioning. With that being said, it’s a great read and I would highly recommend it!
The review was published as it's written by reviewer in December, 2013. The reviewer certified that no compensation was received from the reviewed item producer, trademark owner or any other institution, related with the item reviewed.
The site is not responsible for the mistakes made. 1717121623540831/k2311a1217/12.17.13