The Layman’s Guide to Understanding Financial Statements



In my book, The Layman’s Guide to Understanding Financial Statements, I will teach you all about what you need to know to read, analyze, create, and understand various financial statements. To be a competent and successful business owner, you will need to know what to do with these forms and how best to utilize them for your business’s financial health.



If you are a business owner or manager, this book will help you handle your duties effectively. This book may also be used by accounting students who wish to sharpen their practical accounting skills. From the start to the end, we use a practical approach to elaborating on every aspect of financial statements. We have used examples, images, and screenshots to help you conceptualize how all the statements are prepared.

To help you understand financial statements and even prepare them, we have simplified this book. You should not expect technical accounting terms or calculations within the book. The book breaks accounting in simple small chunks that are easy to understand for all.

In this book, we have covered four main sections. The introductory section mainly focuses on new terms you will encounter in the book. To help you understand the book well, we look at some accounting terms and explain them in the simplest way possible.

In the second section of the book, we introduce you to financial statements. Before you start preparing any financial statements, you should know what they are. The book gives you a snippet of each of the important financial statements. We look at what each financial statement is used for and how important it is to the business. We also have a look at the general use of each financial statement and help you understand the benefits of each statement to your business.