It was an article that got me excited about finance, and then I started my journey to learn more about it. I spent more than 200 hours with senior chartered accountants to understand numbers, to demystify numbers for a layman. Throughout this blog I will be using my philosophy which is KISS – Keeping Information Simple and Specific. Albert Einstein very beautifully said – “If you can’t explain it simply, you don’t understand it well enough”.
There is a qualification criterion to read and understand financial statements. This is the yardstick that I use to find out if my clients qualified to read and understand financial statements. Let me use the same thing here. It is a trade secret which I do not let out but now will
If you think you can read and find meaning from the above picture and it makes sense, it simply means you are qualified to read and understand financial statements. Does that mean you should learn tennis. Well it is not that. If you can read numbers you are qualified to read Financial Statements
Business is Simple
Business is not complex but very simple. Just follow the simple rule – Earn more, spend less.
While doing business when we add the transactions that involve money coming in and Money that is supposed to come in, it is the total earnings, and when we add money going out and the money supposed to go out it is the expenses or spending.
When the income is more than spending the business will make profit. It is so simple to do business.