When I talk to my clients about reading financial statements they will always say – Hey I do not understand numbers. I was not good at maths. So how do I understand financial statements? I too am not trained in Finance, but understand it.This is a myth that always is present. You do not need to be a maths expert to understand finance and financial statements. You just need to understand basic numbers. Now let us take an example to make it more clear.
Can you read the football score sheet in the adjacent picture? Well I believe you can. If you can read the score sheet of a soccer game you can well understand to read financial statements. It is so simple. The numbers we use in business are very basic. Almost everyone knows to count money and add and subtract. That is the maths we require nothing more.
If it is still not clear let us take another example. It is more financial in nature. Let us take a first look at a Balance Sheet. Can you read the numbers now on the Balance Sheet. You sure can. Only you will not be able to understand the terms. Well we will understand the terms in the Balance Sheet. Going slow will be the key to learning quick.