Chapter 1 : Your Financial Dashboard Flashcards
What are the three key statements that make up the financial dashboard that tracks the health of the business?
The Net Income Statement, The Cash Flow Statement, and The Balance Sheet make up the three key statements to track the health of a business.
Which financial report answers the question, “How can we work half as hard and make twice the money?”
The Net Income Statement will show “How you can work half as hard and make twice the money in your business.”
What is the primary reason small business mainly fail?
Small businesses largely fail due to mismanagement.
Which financial report answers the question, “How do we know our marketing efforts are paying off?”
The Net Income Statement will show if your “marketing efforts are paying off.”
Which financial report answers the question, “Does my business have enough cash to pay its bills for the next three months?”
The Cash Flow Statement will show, “Does my business have enough cash to pay its bills for the next three months?”
Which financial report answers the question, “Is our gross margin robust enough to run the business?”
The Net Income Statement will show if your business “gross margin robust enough to run the business.”
Which financial report answers the question, “How do I plan for cash needs during the lean months of the year?”
The Cash Flow Statement will show, “How do I plan for cash needs during the lean months of the year?”
Which financial report answers the question, “Do we know what our true direct costs are?”
The Net Income Statement will show if “you know what your businesses true direct costs are.”
Which financial report answers the question, “How much working capital does the business have?”
The Balance Sheet will show, “How much working capital does the business have?”
Which financial report answers the question, “Is our business making any money?”
The Net Income Statement will show if your business is making Money.
Which financial report answers the question, “Is it getting a good return on the debt it is carrying?”
The Balance Sheet will show, “Is it getting a good return on the debt it is carrying?”
Which financial report answers the question, “When is the best time to apply for a credit line and how do I manage it?”
The Cash Flow Statement will show, “When is the best time to apply for a credit line and how do I manage it?”
Which financial report answers the question, “Does the business have too much debt?”
The Balance Sheet will show, “Does the business have too much debt?”
Which financial report answers the question, “Does the business have the right kind of debt?”
The Balance Sheet will show, “Does the business have the right kind of debt?”
Which financial report answers the question, “Are we pricing our products and services so that we’re not cheating ourselves out of a reasonable return while still remaining an attractive alternative to the competition?”
The Net Income Statement will show if your business “is pricing products and services so that you’re not cheating yourselves out of a reasonable return while still remaining an attractive alternative to the competition.”
Which financial report answers the question, “Are our products and services the right ones?”
The Net Income Statement will show if your business “products and services the right ones.”
What are the three gauges (reports) needed to manage a business?
The Three Reports(Guages) needed to properly manage a business are Net Income Statement, Cash Flow Statement, and Balance Sheet.
