Easy as 1, 2, 3.
Updated: May 10
(Providing management with financial fundamentals is as easy as 1, 2, 3)
1. Problem:
Management of many private companies do not understand their business’ financial fundamentals.
2. Reason:
Management is not provided with succinct, understandable financial fundamentals.
3. Solution:
Provide management with succinct, understandable financial fundamentals.
Too often, the balance sheet and cash flow statement are not insightful but just seen as pages with a lot of numbers on them. These numbers are known to be important, but they are not tied in with the P&L to provide a succinct, understandable full financial profile.
This is easily fixed.
Management, directors and investors should request their accounting / financial professionals provide them with their business’ complete financial fundamentals in a succinct and understandable manner.
If they do not comply with this request, management may question whether or not the following Albert Einstein quote applies to their advisor(s).
“If you can't explain it to a six-year-old, then you don't understand it yourself”
Find out more about the Solution to the Problem described above by reaching out to:
Edward B. Patton
5701 Broadway, Suite 102 San Antonio, Texas 78209
ebp678@prodigy.net Phone (210) 822-9977
PattonTrender | Financial Fundamentals for Businesses |