Hi, I’m Vishal Gupta, a chartered accountant, an entrepreneur and a writer.
Founders, managers, employees, and investors have one common need. They want to understand business numbers better. By studying numbers, founders want to be assured that their business is on the right track, managers/employees want to take better day-to-day decisions, and investors want to make sure their investment is safe or will be safe.
The problem? Understanding business numbers and, more importantly, the stories behind the numbers is difficult.
Your accounting software will show you the net profit you made last month, but it won’t tell you the story that’s unfolding behind that profit number. The net profit may connect with 100 other numbers, each connection telling a story about your business. Or, your accounting software may tell that the operating cash flow you made last month, but it won’t tell you what an operating cash flow is, how it’s calculated, and its importance. Your accounting software also may not tell you that when your net profit is healthy but your operating cash flow is struggling, it’s a sign that profit isn’t converting into actual cash. There could be a lot of reasons that’s happening. Maybe you’re paying your suppliers too fast, or your customers are delaying payments, or high inventory.
I can go on, but you get the point, right?
So, as business owners, managers, employees, or investors, you need someone who explains business numbers in an easy-to-understand way.
While there are many people out there who explain business numbers, most don’t do it in a way that is easy for a non-finance person to understand.
I hope this blog fills that gap.