Difference between balance sheet and income statement

Simplified summary….

Consultants Mind

For 80% of you, this is so basic that you just “rolled your eyes”.  Completely understand. If one of my team asked me this, I would not be happy.  I would be scared.

In a quick survey from my last post, looks like 1/3 of us don’t feel that confident with our accounting literacy.  That’s okay, but let’s not make this an excuse.  You gotta know and understand this stuff.  It’s basic. . like knowing the difference between a strike and a foul ball in baseball.  All business concepts are built on this foundation.  Without a crystal clear sense of this, everything business thing you say has the potential to be shallow, unstructured, or wrong.

The income statement is about profits.  Fundamentally, it helps you answer the question of “Did the company make money during this quarter?”  It starts with revenue, then takes out costs, taxes, and other things to get you to net income (net profit).

Digging a little bit deeper, here…

View original post 280 more words

Advertisements

About redahojeij

Extensive international experience in the pharmaceutical industry in General Management, Sales and Marketing, in mature and emerging Markets across Europe, Middle East and North Africa. > + 25 years of experience in a Fortune 50 global pharmaceutical Company, developing business, sales potential, new opportunities, people and organization structures across a wide range of emerging and mature markets in EMEA. Founded KALEMA Consulting to provide services in Executive Business Coaching and Consulting, for Business Executives wanting to improve performance and effectiveness in face of existing business challenges in International mature and emerging markets Double Education background, Business and Science. Tri-lingual (English, French and Arabic)
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s