Managerial Financial Statements

Thinking of finance, there is  always one problem for managers in the  business world. 

They are often unfamiliar with the real meaning of financial terms. This course will help those who are interested to learn the framework of managerial financial statements. The balance sheet, Income and Cash flow statements are explained here from the management and owners' point view. This knowledge would be especially useful  not so much for academic purposes but mainly for business practices.

Before we begin, It would make sense to clarify the difference between managerial and external financial statements. 

Managerial Financial Statements

The main purpose of Managerial financial statements is to provide owners and managers with timely, reliable information about business performance for decision making in the most convenient and useful format. 

External Financial Statements

External financial statements are those distributed outside of the company's management. The usual recipients of this information are government agencies, banks and other external institutions. These statements are quite strictly regulated by national legislation and international accounting standards which is not always best suitable and convenient for management purposes.

We focus on Managerial Finance in this course. 

At first, I am going to challenge your understanding  of Net Profit. Please check your confidence, knowledge and intuition at the start of this course. You can rely on your common management sense, but not only on accounting rules. Sometimes it works even better.