Financial Numbers Can Play Tricks

DEDHAM, Mass. - July 27, 2016 - PRLog -- Chief Financial Officer Michael Barbarita emphasizes the importance of interpreting financial statements correctly in his latest blog post.  Michael has compiled some interesting, yet little known facts regarding the pitfalls business owners may fall into when interpreting financial statements.  For example:

· The cash flow of your business needs to be monitored: Even when a company is making money, it is possible the business will experience poor cash flow because the cash cycle is too long.

· It is important to understand the equity section of the balance sheet: Under certain circumstances, a high equity balance can be deceiving.

· Direct costs: Defining and interpreting direct costs versus cost of goods sold is another essential component in putting together the financial numbers on financial statements.

Correctly interpreting financial numbers is an integral step to making better business decisions.

The full blog post can be found at http://cfo-chief-financial-officer.blogspot.com/2011/02/if-baseball-bat-and-ball-together-cost.html