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Financial Intelligence for Entrepreneurs: What You Really Need to Know About the Numbers

4.13  ·  Rating details ·  2,246 ratings  ·  64 reviews
Using the groundbreaking formula they introduced in their book Financial Intelligence: A Manager's Guide to Knowing What the Numbers Really Mean, Karen Berman and Joe Knight present the essentials of finance specifically for entrepreneurial managers.

Drawing on their work training tens of thousands of people at leading organizations worldwide, the authors provide a deep und
Paperback, 262 pages
Published September 9th 2008 by Harvard Business Review Press (first published March 25th 2008)
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Average rating 4.13  · 
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 ·  2,246 ratings  ·  64 reviews

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Apr 25, 2020 rated it it was amazing
Shelves: must-reads, finance
Please don't this book if you have already read "Financial Intelligence - A Manager's Guide to knowing what the numbers really mean" (the authors have merely recycled the material from here).

Standout features:
1. Authors make the content interesting by highlighting many cases of financial shenanigans committed by various companies; by reading this, non-finance people will be more alive to the possibilities of frauds and other acts of deceit. And finance people will be able to re
Andres Sanchez
Dec 18, 2020 rated it it was amazing  ·  review of another edition
I'm a technical guy, so I found this book to be amazing for people wanting to get a grip on finance basic concepts with a practical goal in mind. I took a couple of courses on finance while doing pre-grad and post-grad and this book had all those concepts plus a lot of practical advice, real-life stories that provide a lot of value and an appendix with exercises.

My biggest takeaway is learning how many assumptions go into the financial statements (e.g.: how you decide to depreciate assets might
Dec 02, 2008 rated it it was amazing
This volume offers a new edition of a book first published (entitled Financial Intelligence) in 2006. Although the focus in this second edition is on entrepreneurs, the material provided will help all managers to develop the entrepreneurial mindset to which Welch refers, and, to acquire a highly-developed financial intelligence quotient (FIQ). Moreover, they can then do everything they possibly can to develop a high-level of FIQ among others at all levels and in all areas of their organization. ...more
Elaha Naderi
Jun 02, 2015 rated it really liked it
The topic is meh, and this is not an accountant's book. Exercises at the end to practise. Context, and sensitization to what the numbers really mean and why they are important, as well as how and why they are modified by accountants, CEOs, CFOs, and the implications. Good to read if you're owning, or thinking about starting a business - you'll need to think about this at some point.
Need some more real-hand practice though. Would combine with case studies or list of interesting case studies (À la
Mike Adeleke
May 09, 2016 rated it it was amazing
I was amazed to learn how little I knew about accounting and financial terms and yet how accessible they were once I saw them in context. This book enables anyone to quickly get up to speed on the key financial metrics of their business.
Fred Rose
Jul 21, 2013 rated it really liked it
If you know finance, this is not a useful book. But if you have no formal finance or accounting training, this is a nice book. It's explicitly geared towards entrepreneurs and helps you understand what parts of typical financial statements are useful to you, and why. I found it to be a pretty good book. I would have like to have seen a little more, and a little clearer explanation, on ROI calculations. Overall though for an entrepreneur who isn't a business major, it's worth reading. ...more
Jul 19, 2015 rated it liked it
Good book to understand the basics on Financial statements, important ratios, and how they will be used. They are very well explained in Layman's terms. It is useful for someone who doesn't know all these. I already knew most of the things described. Hence that 3 star. ...more
Oct 08, 2010 rated it it was amazing
Shelves: business
A very simple clear introduction to the art of accounting in the context of running a small business. Well written, great book.
Jan 11, 2013 added it
Got me acquainted with the basics of company financials. Well written, because it's so easy to understand. ...more
Jul 09, 2017 rated it it was amazing
I read this book because it was recommended by Josh Kaufman (The Personal MBA) for further reading on finance. When I was reading the chapter on finance in The Personal MBA. I find it difficult to grasp. I actually took a long time to finish that chapter but my interest in the topic didn't fade because I know its importance in a business.

I would say that this book provides a good introduction to finance. The authors presented financial concepts in a way that is easy to follow and understand. Ex
Feb 28, 2019 rated it it was amazing
Financial Intelligence For Entrepreneurs is exactly what the title claims. This book is hands down the best book I’ve read for understanding the numbers in your business. The author is careful to explain and define various facets of your financials that you should understand. The book covers topics like P&L statements, cash flow, balance sheets, ratios, and everything else you could need. The author tells you how to analyze, evaluate, and maximize your finances. The back of the book has exercise ...more
Nov 11, 2018 rated it it was amazing  ·  review of another edition
Must read

We often take financial principles for granted, and assume that everyone working in an organization would be well aware of these. However, it really often is not the case. This book lays out the fundamental principles of reading financial statements and understanding the basics. The message of the book is clear: finance isn't a science, but an art; and knowing every assumption behind the numbers will make you realize what is actually going on
Thuc Anh
Oct 29, 2018 rated it it was amazing
Suitable for newbies in financial as all terminologies are explained very clearly and easy to understand. The book also explains the business aspects of financial ratios in a logical way which are very useful and easy to remember.

Highly recommend for entrepreneurs or anyone who is new in finance but want to learn more about it.
Mihai Cosareanu
Feb 15, 2019 rated it really liked it
I would say that it's a book that compliments The McGraw-Hill 36 hour course for non financial managers. I think that the basic examples are better explained there and personally I found that book more engaging. After that, this complements it well with real-world examples of book cooking, how to make decisions, what the ratios tell you, etc. ...more
Mar 18, 2018 rated it liked it
For reasons I can’t quite explain this book turned on some finance and accounting lights that had been off in my brain. Really great overview of what an entrepreneur should focus on in startup finance.
Seth Mcdevitt
Feb 27, 2019 rated it it was amazing  ·  review of another edition
Necessary Numerals

This book is an excellent resource for the layman who desires to have a working knowledge of accounting practices. You will be able to examine all the financial documents necessary to run a business and to do that with confidence. Worth the money and time.
Aug 07, 2020 rated it really liked it
I bought this book as it is one of "The Personal MBA Recommended Reading List". It is a very good book to understand the basics on Financial statements, important ratios.
They are very well explained in Layman's terms. It is good for someone who are new to accounting and finance world.
Abhi Yerra
Sep 22, 2020 rated it it was amazing
Man I wish I read this book a long time ago. Indispensable if you are ever dealing with numbers or growing a business. Covers the three major financial statements and also the ratios that should be tracked.
Dec 16, 2021 rated it liked it
Practical financial knowledge in here. Be warned, if you are new to corporate finance this book won't make a lick of sense. I didn't understand most of these concepts until actually working in corporate America and attending business school. ...more
Luke Gruber
Nov 26, 2022 rated it it was amazing
Honestly one of the best books for anyone to learn finance (Income Statements and Balance Sheets).

It starts real big picture and narrows in an a really good pace.

For anyone wanted more information on the topic, this is agreed place to start (or even end!).
Alessandro Orlandi
Oct 29, 2017 rated it it was amazing
A good book to understand more about financial statements for entrepreneur. Even as investor, it's very very good. ...more
Dele Omotosho
Jan 15, 2018 rated it it was amazing
Takes the scare away on understanding the numbers.
Aug 26, 2018 rated it it was amazing
Shelves: finaccounting
Excellent introduction for non-financials people such as engineers, technicians etc.
Tyas Kokasih
Jan 02, 2019 rated it it was amazing
It's weird to say this about book on finance, but this book is a page turner!

The recipes?
- It doesn't try to make you an accountant
- It focuses on 'juicier' part of finance, e.g. how to cook your book

And as a bonus, you've got to learn *the* fundamental principle of accrual accounting:
- The Matching Principle

Which explain on why we can cook a book
Silvano Paternoster
Jan 07, 2019 rated it it was amazing
Great book. Easy to read and informative. I've devoured it in 3 days ...more
Ben Rosie
May 04, 2019 rated it it was amazing
Good as a refresher or primer, in $ but still relevant to UK GAAP
Amar Bhullar
Jan 04, 2020 rated it it was amazing
A crash course for any entrepreneur on understanding the numbers
Đỗ Sỹ Quý
Nov 01, 2020 rated it it was amazing  ·  review of another edition
Thanks for such helpful book about financial statements, things about those statements became clear to me after finishing this book.
Daniel Hoffman
Dec 08, 2020 rated it it was amazing
Informative and useful
Dec 17, 2020 rated it it was amazing
Short, to the point, very useful
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