This is a six blog series on Why Review Financial Statements? Catalyst Cohorts has re-invented Peer 2 Peer CEO groups with the novel concept that to get the best results from the time we spend helping each other with issues and opportunities we need to know each other’s business or organization better. Because we review Financial Information and Key Performance Indicators each month we get to know each other’s businesses more intimately and in return we know our own business better too! Here is Why, What and How we do this
Financial statements are not just numbers.
They also are not just numbers bunched into presentation mode based on Generally Accepted Accounting Procedures (GAAP).
Financial Statements are much, much more!
When looking and reviewing financial statements we need a Paradigm shift. This review is NOT just about number crunching!
It’s about seeing the operations and people behind and in front of the numbers; Prospects, Clients, Partners, Staff, and needed Resources.
The numbers represent every activity done or not done; your hopes and plans to reach them; and every person related the organization being presented in any way!
Watching the financials over time gives a great view of rate and rhythm of change.
Financial statements represent a snapshot across a great time continuum of all the people and activities; of all the hopes and dreams; of all the good and bad ideas; of the value offered and received; of success and failure.
And what a snapshot it is!