Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    Finance Basics (HBR 20-Minute Manager Series)
    Finance Basics (HBR 20-Minute Manager Series)
    Finance Basics (HBR 20-Minute Manager Series)
    Ebook100 pages1 hour

    Finance Basics (HBR 20-Minute Manager Series)

    By Harvard Business Review

    4.5/5

    ()

    Read preview

    About this ebook

    Intimidated by corporate finance? The numbers (and the jargon) can feel overwhelming--but you have to understand them to manage effectively. Finance Basics explains the fundamentals simply and quickly, introducing you to key terms and concepts such as:

    • How to navigate financial statements
    • How to weigh costs and benefits
    • What’s involved in budgeting and forecasting
    • How to gauge a company's financial health

    Don't have much time? Get up to speed fast on the most essential business skills with HBR's 20-Minute Manager series. Whether you need a crash course or a brief refresher, each book in the series is a concise, practical primer that will help you brush up on a key management topic. Advice you can quickly read and apply, for ambitious professionals and aspiring executives--from the most trusted source in business. Also available as an ebook.

    LanguageEnglish
    PublisherHarvard Business Review Press
    Release dateFeb 18, 2014
    ISBN9781625270894
    Finance Basics (HBR 20-Minute Manager Series)
    Author

    Harvard Business Review

    Harvard Business Review es sin lugar a dudas la referencia más influyente en el sector editorial en temas de gestión y desarrollo de personas y de organizaciones. En sus publicaciones participan investigadores de reconocimiento y prestigio internacional, lo que hace que su catálogo incluya una gran cantidad de obras que se han convertido en best-sellers traducidos a múltiples idiomas.

    Read more from Harvard Business Review

    Related to Finance Basics (HBR 20-Minute Manager Series)

    Related ebooks

    Business For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      The Economic Usefulness of Accounting

      Jan 1, 2017

      FACULTY FOCUS Ole-Kristian Hope, Professor of Accounting, Rotman School of Management In a recent paper, you examined the ‘economic usefulness’ of accounting for private firms. What did you find? For some privately-held firms, the costs of providing

      6 min read

    • Article

      10 Ways to Fail Miserably at Office Politics

      Apr 30, 2021

      “Office politics,” says Boston-based Karen Dillon, “is impossible to avoid. But it is manageable if you know what not to do. As the former editor of the Harvard Business Review magazine and author of the HBR Guide to Office Politics, Dillon provides

      3 min read

    • Article

      3 Ways to Increase the Enterprise Value of Your Family Business

      Aug 31, 2022

      Many entrepreneurs focus on revenue, innovation and people to lead their enterprise forward in the future – but business tends to get in the way.  Finding, recruiting and hiring talent, maintaining relationships with key customers and vendors, dealin

      3 min read

    • Article

      Small Business Finance

      Mar 31, 2020

      Small Business Finance
      3 min read

    • Article

      Financial Literacy For Architects

      May 7, 2021

      Financial Literacy For Architects
      4 min read

    • Article

      4 Pricing Tweaks To Increase Profit

      Apr 20, 2022

      Most small business owners I know got into business to have more freedom and flexibility. Or more recently, to have more control over their financial stability.  Yet, often the more successful you become, the more the needs of your business take ove

      2 min read

    • Article

      A Business Wealth Creation Roadmap

      Aug 1, 2022

      A Business Wealth Creation Roadmap
      5 min read

    • Article

      Warning: Your Business Is Not a Retirement Fund!

      Dec 11, 2021

      I often receive inquiries from business owners seeking to increase their company’s profitability, margin, etc. Many of them view the business as their retirement plan. Although it’s an asset you could use to fund your retirement, I believe focusing o

      5 min read

    • Article

      Don't Go Down With the Ship

      Nov 12, 2022

      Don't Go Down With the Ship
      3 min read

    • Article

      HOW TO Manage Your Money As A Freelancer

      Sep 13, 2020

      The world is changing and the traditional commute to and from an office for a 9am to 5pm day is slowly falling away. More people are exploring their talents and skills that are unrelated to traditional employment, and they must find time to acquaint

      4 min read

    • Article

      Biz Start-Up Guide: Step 3 Make Plans Think Through Important Aspects of Your Future Home Business

      Sep 29, 2022

      Order at https://homebusinessmag.com/home-based-business-guide/ You know what type of business you want to go into, and that's a great start. You probably can't wait to begin. But before you do, it's essential to make plans. You need to think through

      11 min read

    • Article

      This Is The End Of The Financial Year

      Jun 6, 2018

      This Is The End Of The Financial Year
      4 min read

    • Article

      What Is A Finance Function?

      Jun 12, 2023

      What Is A Finance Function?
      4 min read

    • Article

      Keep Control Of Your Cash

      Dec 15, 2023

      Keep Control Of Your Cash
      2 min read

    • Article

      Realizing Profit Potential

      Oct 18, 2019

      Realizing Profit Potential
      4 min read

    • Article

      Ways To Reduce Your Overheads

      Apr 9, 2021

      Over the past months, many businesses have had to reduce costs drastically to remain afloat due to the economic conditions and uncertainty brought about by the COVID-19 pandemic. Farmers should be thinking along the same lines, if they are not doing

      2 min read

    • Article

      For Business Owners, It's a Seller's Market

      Mar 29, 2018

      There may be no better time than now to put your business on the market. Due to the recent tax law changes, potential acquirers have more capital to invest and more capability to grow. As a seller, the current economic environment provides ample oppo

      4 min read

    Related categories

    Reviews for Finance Basics (HBR 20-Minute Manager Series)

    4.5/5

    32 ratings6 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

    • 5/5
      Fácil de entender , bien explicando sin tanto concepto que confunde solo lo importante
    • 5/5
      I was in need of understanding basics,this book was very crisp and neat loved reading it.
    • 5/5
      Really helpful for the People who has no background related an accounting. as usual HBR make its easier to understand.
    • 5/5
      This book covers the very basics of finance; super well explained.
    • 4/5
      Nice compilation of basic finance concepts..worth to have for an quick refresh
    • 5/5
      good book to read on finance for people with few knowledge

    Book preview

    Finance Basics (HBR 20-Minute Manager Series) - Harvard Business Review

    Finance Basics

    Get up to speed fast on essential business skills. Whether you’re looking for a crash course or a brief refresher, you’ll find just what you need in HBR’s 20-Minute Manager series—foundational reading for ambitious professionals and aspiring executives. Each book is a concise, practical primer, so you’ll have time to brush up on a variety of key management topics.

    Advice you can quickly read and apply, from the most trusted source in business.

    Titles include:

    Creating Business Plans

    http://hbr.org/product/creating-business-plans-20-minute-manager-series/an/16998-PBK-ENG

    Delegating Work

    http://hbr.org/product/delegating-work-20-minute-manager-series/an/16999-PBK-ENG

    Finance Basics

    http://hbr.org/product/finance-basics-20-minute-manager-series/an/16864-PBK-ENG

    Managing Projects

    http://hbr.org/product/managing-projects-20-minute-manager-series/an/16862-PBK-ENG

    Managing Time

    http://hbr.org/product/managing-time-20-minute-manager-series/an/17001-PBK-ENG

    Managing Up

    http://hbr.org/product/managing-up-20-minute-manager-series/an/16863-PBK-ENG

    Presentations

    http://hbr.org/product/presentations-20-minute-manager-series/an/16865-PBK-ENG

    Running Meetings

    http://hbr.org/product/running-meetings-20-minute-manager-series/an/17003-PBK-ENG

    Finance Basics

    Decode the jargon

    Navigate key statements

    Gauge performance

    HARVARD BUSINESS REVIEW PRESS

    Boston, Massachusetts

    Copyright 2014 Harvard Business School Publishing Corporation

    All rights reserved

    Printed in the United States of America

    10 9 8 7 6 5 4 3 2 1

    No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.

    The web addresses referenced in this book were live and correct at the time of the book’s publication but may be subject to change.

    Library of Congress Cataloging-in-Publication Data

    Finance basics.

             pages cm — (20-minute manager series)

       ISBN 978-1-62527-085-6 (alk. paper)

       1. Corporations—Finance.     2. Managerial accounting.

       HG4026.F487 2014

       658.15—dc23

                                                                    2013039035

    ISBN: 978-1-62527-089-4 (ebook)

    Preview

    No matter where you work in your organization, you’ll do your job better if you understand basic financial concepts. You’ll be a more effective contributor to your company’s efforts to make money and grow.

    This short book explains the basics of finance. Though reading it won’t make you a finance expert, it will help you:

    • Make sense of the three key financial statements.

    • Gauge your company’s financial health.

    • Weigh costs and benefits before committing resources.

    • Consider financial risks when making decisions.

    • Estimate future performance.

    • Track investments against what you’ve budgeted.

    Contents

    Why Understand Finance?

    Navigating the Three Major Financial Statements

    Accounting methods

    The income statement

    The balance sheet

    The cash flow statement

    Using the Statements to Measure Financial Health

    Profitability ratios

    Efficiency ratios

    Liquidity ratios

    Leverage ratios

    Other ways to measure financial health

    Preparing a Budget

    Top-down versus bottom-up budgeting

    Getting started

    Articulating your assumptions

    Quantifying your assumptions

    Calculating Return on Investment

    Costs and benefits

    Payback period

    Net present value and internal rate of return

    Break-even analysis

    Sensitivity analysis

    Evaluating unquantifiable costs and benefits

    Tracking Performance

    Performance of an investment

    Performance of an existing unit

    Forecasts

    Test Yourself

    Answers to Test Questions

    Key Terms

    Learn More

    Sources

    Index

    Finance Basics

    Why Understand Finance?

    Why Understand Finance?

    Finance matters to all companies because they all have to bring in money and spend it in order to do business. On the bringing-in side, smart managers consider questions like these:

    • How much of our money comes from the owners? How much from sales? How much from borrowing?

    • Which of our product lines and regions earn the highest profits? Which ones fail to perform?

    • How long does it take to collect money that customers owe us?

    On the spending side:

    • Are our costs what they should be? Are we spending the right amount on our people and on our physical assets, such as office space and computer equipment?

    • If we can invest in only one of several opportunities for growth, how do we determine which one would generate the most value?

    • If we increased our output by 20%, would we make 20% more money?

    Your company’s finance department (or bookkeeper, if it’s a very small company) produces financial statements, budgets, and forecasts. By understanding these documents, you’ll gain the information you need to ask essential questions and make smart decisions for your division, department, or team.

    By the way, finance uses jargon that may be unfamiliar

    Enjoying the preview?
    Page 1 of 1