If your home-grown business plan financial model is super tripped out with tons of drivers and interlocking financial statements, you can pat yourself on the back and skip over this blog post.
If, on the other hand, mapping out your financial projections and then explaining them is your biggest fear as an entrepreneur, there is hope!
One of my favorite job functions as a financial modeler at Masterplans is talking through a client’s financial statements with them and giving them confidence to answer investor or bank questions in meetings. For clients that aren’t very financially fluent, it’s fun to go through each table one at a time and help them make sense of it all. (We also have a cheat sheet that clients often find handy.)
Over the next series of finance-related blog posts, I’ll attempt to impart some high-level clarification about some financial statements to increase your comfort level. Let’s begin with a common question: What is a Cash Flow Statement?
So the next time someone asks you, "What is a Cash Flow Statement?" you'll have the answer. Now that you have the basics down, stay tuned for next time, when I'll cover another biggie: The Balance Sheet.
Kelly Hinkle is VP of Finance at Masterplans.