Financial Processes: Your Income Statement

07/28/2016 06:37 to watch
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Your income statement shows the performance of your company over a period of time and reveals important information about how efficiently you are running your business. Understanding your income statement, and what it tells you about the health of your business, is critical.

Suggested Readings

Founders School || The Art of Startup Finance || Financial Processes: Your Income Statement || Impact Guide (PDF).

Berman, Karen and Joe Knight. 2008. Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers. Harvard Business Press.

Richard Roth. “Understanding the Income Statement”.

Questions for You

What are the main drivers of my revenues and costs?

What details of revenues and costs should I measure and monitor?

Which is more important for our company right now: growing more quickly, or operating more profitably?

Questions for Your Team

What are the main drivers of our business?

What details of operating efficiency should we be measuring and monitoring?

How can we grow revenues faster?

How can we operate more efficiently?

Tools and Exercises

Organize your income statement around the main drivers of revenues and costs.

Produce an income statement on a monthly and quarterly basis.

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