/tags/finance/ Recent content in Finance on Michael Doan Hugo en-us Fri, 27 Oct 2023 00:00:00 +0000 /posts/company-health-metrics/ Fri, 27 Oct 2023 00:00:00 +0000 /posts/company-health-metrics/ <p>Only a handful of financial metrics are needed to understand a company’s health.</p> <p>You can certainly get fancy and go crazy with ratios, charts, and dashboards, but keeping it simple will get you 80% to understand your company.</p> <h2 id="cash-balance">Cash balance</h2> <p>Knowing the cash balance daily helps you understand if you have enough to fund operations.</p> <p>It’s a good indicator of whether you must ramp up cash collections or slow down cash expenditures.</p> /posts/financial-statements-blocks/ Tue, 17 Oct 2023 00:00:00 +0000 /posts/financial-statements-blocks/ <p>Financial statements are made of small building blocks. To understand the financial statement and make better business decisions, you must understand how the building blocks fit.</p> <h2 id="accounts-are-the-smallest-building-blocks">Accounts are the smallest building blocks.</h2> <p>Accounts, sometimes called general ledger accounts, are the smallest building blocks. It&rsquo;s where your transactions are recorded. For example, when you spend money on office supplies, you&rsquo;ll record it in an Office Supplies account.</p> <p>Accounts are grouped in broad categories and numbered:</p>