Do You Know Your Numbers?
The City of Chino, through its continued sponsorship of the Inland Empire Small Business Development Center, offered a workshop on “Understanding Your Financials” on Tuesday, March 4th. The workshop was offered at the Chino Business Resource Center, located within the Carolyn Owens Community Center. The SBDC has offered workshops and one-on-one business consulting at this location since the Business Resource Center was opened over ten years ago.
Taught by Business Consultant Robert Usher, the workshop focused on the three main financial documents crucial to any business: income statements, balance sheets, and cash flow statements. The component parts of each document were detailed, and sample completed financial statements were reviewed. After a question and answer period, attendees were asked to roll up their sleeves and put into practice what they had learned. They were provided blank versions of these three important documents, along with a data sheet containing financial information for a fictitious business. Attendees then had to complete an income statement, balance sheet, and cash flow statement on their own from scratch.
In addition, various financial ratios, such as debt-to-equity and the acid test, were outlined. Often these ratios are compared to industry-standard figures to help a business owner determine the overall health of their business.
If you feel your business would be benefited by a “check-up” of its financial performance, or you have any other business consulting needs, please set up an appointment with one of the Inland Empire Small Business Development Center’s Business Consultants by calling (909) 983-5005.