How to Read and Use Financial Statements

Know your numbers! 

These 9 online sessions will teach you the basics of accounting and finance that underline the use of financial statements. 

You will be able to read and understand the three financial statements: Balance Sheet, Profit and Loss Statement, and Cash Flow Statement.

You Will Learn:

Introduction — Workshop Segment 1

  • Terminology, basic accounting model, and the information flow in finances

Balance Sheet — Workshop Segments 2-4

  • The layout and sections of the Balance Sheet
  • Use of assets and liabilities to increase profits
  • The basic accounting equation
  • Use of ratios: Debt to Equity Ratio, Current Ratio, and Quick Ratio
  • Use of Balance Sheets to analyze and improve finances

Profit And Loss Statement — Workshop Segments 5-6

  • The layout and sections of the Profit and Loss Statement
  • Relationship of the P&L to the Balance Sheet
  • Vertical analysis of the P&L.
  • Horizontal analysis of P&Ls
  • Use of the P&L to analyze and improve profitability

Cash Flow Statement — Workshop Segments 7-9

  • The two methods of accounting—Cash and Accrual
  • The layout and sections of the Cash Flow Statement
  • Relationship to Balance Sheets and bank accounts
  • Two methods of preparing the Cash Flow Statement—Direct and Indirect
  • Relationship between the P&L Statement and the Cash Flow Statement
  • Evaluating a Net Change in Cash that is negative
  • Use of the Cash Flow Statement to improve cash flow

To get the most out of the workshop, you must have printouts of the following:
• Their Chart of Accounts
• Balance Sheets for the past 3 months (print out the last day of each month)
• Profit and Loss Statements (Income Statements) for the past 3 months
• Cash Flow Statements (Statement of Cash Flows) for the past 3 months
• Recommended: Common Size Balance Sheet & P&L (to show percentages)
• Something to write down notes, questions or actions you need to take, such as a notebook, paper or laptop

Alternative: If the client has access to their financial accounts during the workshop and they are proficient at pulling up reports, they may do it that way instead of using printouts.


Before the class I was simply lost and unable to understand anything about my financial reports. Taking this course definitely enabled me to understand the terminology and the ability to have control of my reports. I am excited about getting started so I can run my shop better. Thank you! – S.S.  


After taking this class I now have the knowledge and confidence to correctly understand and use my financial reports. I get it now! – C.A.  


We’ve got the answers. Get the details on how you can grow in this course.

Call us at 818.863.1077
or E-mail us at