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Financial Intelligence, Revised Edition: A Manager's Guide to Knowing What the Numbers Really Mean

4.10  ·  Rating details ·  2,194 ratings  ·  115 reviews
Companies expect managers to use financial data to allocate resources and run their departments. But many managers can’t read a balance sheet, wouldn’t recognize a liquidity ratio, and don’t know how to calculate return on investment. Worse, they don’t have any idea where the numbers come from or how reliable they really are.

In Financial Intelligence, Karen Berman and Jo
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Kindle Edition, 304 pages
Published January 29th 2013 by Harvard Business Review Press (first published December 7th 2005)
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4.10  · 
Rating details
 ·  2,194 ratings  ·  115 reviews


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☘Misericordia☘ ~ The Serendipity Aegis ~  ⚡ϟ⚡ϟ⚡⛈ ✺❂❤❣
A very accessible material for non-professionals and professionals alike. If you want to get an understanding of how the finance would have sounded like had it had a human face, read this.

Q:
If you read the news regularly, you have learned a good deal in recent years about all the wonderful ways people find to cook their companies’ books. They record phantom sales. They hide expenses. They sequester some of their properties and debts in a mysterious place known as off balance sheet.
Some of the t
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Nhung Pham
Jul 20, 2017 rated it it was amazing  ·  review of another edition
Shelves: finance
Cuốn sách cô đọng và thú vị nhất về tài chính của mình cho tới thời điểm này. Ngay trước khi được tặng cho cuốn này mình vẫn luôn là đứa có ác cảm hay nói đúng hơn là dân dummy đối với tài chính. Có 2 lý do mình cho cuốn sách này 5 sao:

(1) Nó không dạy cách định khoản, hạch toán, cách trở thành một kế toán viên mà đưa ra những dẫn dắt cho bất cứ ai trong một tổ chức hiểu các vấn đề tài chính của công ty, cách đọc các báo cáo tài chính, hiểu lý do tại sao chính sách trả lương, hoa hồng, KPI thay
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Marrije
Dec 01, 2015 rated it really liked it  ·  review of another edition
Shelves: business
Useful! Geared a bit more towards larger organisations than mine, but I still learned a lot. I can finally read my balance sheet, yay.
Greg
Nov 06, 2014 rated it it was amazing  ·  review of another edition
Back when I was in college I learned about the beauty of finance and accounting. It was a very interesting subject that I almost decided to switch course and be an accountant. Nevertheless, up to this day, I still find accounting not just exciting but very useful.

This book by Karen Berman and Joe Knight is an excellent primer for any non-accountant managers who want to understand what the numbers really mean. It is very easy to understand and full of insightful stories (and sometimes jokes) tha
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Jon
Dec 29, 2008 rated it it was amazing  ·  review of another edition
This book is probably the best overall reading material in understanding Managerial Accounting and to be able to understand what people in your finance departments at work, be it your CFO or co-workers to even better understanding your CPA at tax time.

I am somewhat biased to most books from Harvard Business Publishing (due in part to a contributing author/member of the Harvard Business Review advisory council) mainly because their material is very in depth and not always that easy to jump into.
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Đạt Tiêu
Feb 25, 2018 rated it really liked it  ·  review of another edition
Absolutely amazing! This book really makes finance interesting.
Will read again soon. Sumary:

There is 3 statements that are basic and helpful when it comes to analyzing any business: income statement, balance sheet and cash flow statement.

I. Income statement: reports business financial state after a period (a month, a quarter, a year) 3 things => revenue, expense and profit. Some notes:
- Revenue is the the value(cost) of the product/service that sells to customers. It should be noted whenever
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Bob Wallner
May 13, 2016 rated it it was amazing  ·  review of another edition
WOW! That sums it up.

20 years ago I started my Undergrad degree in Finance...I quickly learned I hated debits and credits and swiched to Operations. Since then I have worked my way up in Corporate America. I am constantly bombarded by various financial jargon. Some of which I have picked up, but much of it still could be as foreign as learning Latin.

Financial Intelligence cuts through the jargon to provide you a clear definitition of what the various statements, reports and ratios mean and more
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Sarita
Aug 22, 2018 rated it really liked it  ·  review of another edition
Shelves: finance
I'm slowly getting myself into studying again --where did summer break go?!
The professor at school recommends this for students with no or little experience in Finance --the way the authors intended it to be.

The book explains that most corporates are measured by numbers (well duh) and that is why managers who are working their way up need to understand how their decisions affect these numbers. The authors are trainers themselves and I find their explanations comprehensible eg. how delaying buyin
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Chanh Nguyen
Jul 02, 2018 rated it it was amazing  ·  review of another edition
Đối với một người làm product như mình thì đây quả là một quyển sách:
1. Hơi phức tạp, phức tạp không phải vì khó hiểu, phức tạp vì quá nhiều thuật ngữ
2. Wow, phải nói là cực kỳ hữu ích, một trong những công cụ hỗ trợ bật lại CEO, CFO, COO:
+ Doanh thu khi nào mới được gọi là doanh thu?
+ Báo cáo kết quả kinh doanh là gì?
+ Bảng cân đối kế toán là gì?
+ Báo cáo lưu chuyển tiền tệ là gì?
=> Một mớ thuật ngữ, phân tích và số liệu trên đưa ra một cái nhìn chung về sức khỏe tài chính của công ty,
...more
Rick Sam
Aug 10, 2018 rated it really liked it  ·  review of another edition
Shelves: finance
An Excellent introduction to the Art of Finance. I especially enjoyed examples of companies. I would recommend this to everyone.

Deus Vult
--Gottfried
Avi-Gil
Oct 22, 2018 rated it it was amazing  ·  review of another edition
Best explanation of "what the numbers really mean" that I've ever read. How finance is as much art as science and why the numbers aren't as set in stone as a non-finance people might think.
Keyvan
Nov 18, 2018 rated it it was amazing  ·  review of another edition
If you look for a deep understanding of finance and accounting, this book is a must-read. Actually, I 've been looking for such a book for some time, but all I got was some full-of-number books. To be honest, although I am a big fan of finance, I never felt like a deep understanding!
Just to give you a hint about the value of the book, I remember from college days, that we were taught different methods of depreciation and renewing the book value of all PPEs at the end of each year. But I never un
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Fraser Kinnear
Jan 09, 2012 rated it it was ok  ·  review of another edition
Shelves: business
I bought this back when I was in college, I think, and never got around to reading it. I had a free evening and decided to pull it off my shelf. Since I bought it, I have gotten a CPA and various broker-dealer certifications, so the book was essentially useless at this point > I skimmed it over the course of an evening. I think this would serve as a pretty good primer to financial management for someone who doesn't have any background in it.
Douglas Wilson
Really illuminating. A must read for every board member.
Huy
Mar 19, 2017 rated it it was amazing  ·  review of another edition
One of the best book I've read. The author translates complex financial terms into day-to-day words, very easy to understand.
Christine Kenney
Ideal way to read this would be in a corporate book club if your employer is a publicly traded company. Barring that, you could pull up your employer's and biggest competitor's filings and work through these short chapters by yourself.

Having taken finance/accounting courses in b-school, this was a nice refresher and reminder of some of the ways accounting can become less concrete and more "artistic" and common places shenanigans can emerge when under pressure to make the numbers meet a certain
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Lesego
Nov 12, 2017 rated it it was amazing  ·  review of another edition
Out of all the financial literacy for non-financial managers books I have ever read, this is by far the most user friendly and intuitive one I've come across.

The financial jargon is presented and broken down in simplistic ways. The flow of the book is superb as one chapter relates to another, making it easier for the reader to understand.

I don't come from a financial background, but I have to admit that this book has improved my financial literacy ten-fold. I would say it is the only financial
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Roo Phillips
Apr 23, 2019 rated it really liked it  ·  review of another edition
A fantastic primer for understanding business financials. Berman uses simple examples to illustrate the art that goes into creating financial statements. She does a great job at teaching you how to read, interpret, and extract information from the balance sheet, income, and cash flow statements. Her explanations are geared towards business managers (not accountants or CFOs) that will be able to use greater financial intelligence to make wise and informed decisions. Berman also covers topics such ...more
Oathofoblivion
Oct 28, 2018 rated it really liked it  ·  review of another edition
Shelves: economy, nonfic
I started reading this book with practically no knowledge in neither accounting nor finance. But, I feel that the contents of the book are presented in such a way that even a person without in-depth knowledge of finance could understand it. Unfortunately, I feel that the provided explanations on some topics need further elaboration. Several times during the course of reading this book, I had to open my browser in order to ensure that my understanding of several concepts are not mistaken, because ...more
Kiran
May 27, 2018 rated it it was amazing  ·  review of another edition
This is a good read for those wanting to get a first hand understanding financial statements and their analysis. I got a much clearer picture of how numbers in these sheets influence the financial decisions of various businesses. The authors have used a somewhat case study based approach involving certain companies and accounting scandals like Enron, SunBeam to explain the concepts which made the book very interesting. The writing is simple and clear and I being from a non finance background, wa ...more
Kc
Jul 03, 2017 rated it it was amazing  ·  review of another edition
This was a useful introduction for various terms and acronyms commonly used in financial statements. The explanations were simple and straightforward with small examples using numbers given. Authors were careful to explain which type of companies benefited most from using the specific ratios illustrated.

MBA preparation book 1 has been completed!
Angel
Aug 29, 2017 rated it really liked it
I enjoyed this book. It didn't get into all the details you delve into in an accounting class, but it gives great insight to the Balance Sheet, the Income Statement and how to dig into the Cash Flow statement from the perspective of a manager at a company who may need to submit requests and justifications for equipment or funding for a particular project.
Trần Phước
Jun 10, 2018 rated it really liked it  ·  review of another edition
This book helps me having basic knowledge about finance. It's very helpful for my future. I will have general view abour financial situation of my company and then understand what happens. I'm just freshman so that this knowlege will help me studying better in financial objects. Now I have more enthusiasm to learn about that major.
Michael Brewington
Sep 07, 2018 rated it it was amazing
Enlightening

Authors did a wonderful job of capturing the key financial components needed for decision making for both managers and entrepreneurs. I will use this book as a reference guide as well. ~mdbii
Benjamin
Jul 18, 2017 rated it really liked it  ·  review of another edition
This book is an efficient, well-storied and entertaining introduction for those of us that want to stop feeling silly because we don't know what EBIDA is. Gives a good perspective on finance, several stories about it, and a guide to making this knowledge available in your company.
Adarsh Khare
Aug 12, 2017 rated it it was amazing  ·  review of another edition
It is an interesting reading that covers basic tips to understand how art and creativity play the role in financial statements. I feel it is a good read foranyone who like to understand the story behind financial numbers and there impacts.
Santiago Díaz Granados
Feb 25, 2018 rated it it was amazing
Excellent book. My background is in finance and I found this book impressive. During all my studies I have not seen best explanations to financial topics than the ones I was able to read in this book. Recommended to everyone that wants to learn or just to refresh financial knowledge.
Matt Reynaud
Mar 02, 2019 rated it it was amazing  ·  review of another edition
If you have read any of the Rich Dad Poor Dad series you will know the importance R.Kiyosaki puts on financial intelligence with good reason.
This book delivers Financial Intelligence in a beautiful balance of industry terms and layman concepts.
A superb piece of pedagogical literature.
Matt Watkinson
Everyone in business should read this book. Everyone with managerial or budgetary responsibility should read it twice. Everyone taking their first C-level role should read it three times just for good measure.
Blundell
Aug 22, 2018 rated it really liked it  ·  review of another edition
Good, but very hard to think about the concepts as an audio book
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