Learn to read your numbers!

1. Do you know the ______?
(Numbers!)

2. Financial Statements, Balance Sheets! Cash Flows!!

3. You are not your company – meaning?? You get sued under
your name and the company gets sued under the company
name
Law
Enforcement
Law
Your company Enforcement
can get punished
independently of
you

4. Know the period for which your financial statements are
made up for!!
Understand that your Balance
Sheet or Profit & Loss or Income
Statement is always made up for a
certain period – generally 12
months.
All the figures would be for this
specific period. The balance sheet
is a position document that shows
the position of your assets and
liabilities on a particular day!

5. For me Asset and Liabilities mean – Eh!!
Asset?!?
Liability!

6. It is good news when you have more people owing you money than the
other way round
Receivables Payables
You will find these
items in your
Balance Sheet.
Receivables on the
Asset Side and
Payables on the
Liability/Equity Side

7. Fixed Costs – These are your costs for keeping your office open! So
until you close down operations, they aren’t going anywhere
Some staff costs
All these expenses sit in your
Profit & Loss Accounts. Search
them out and identify what your
business cannot survive without!

8. Check how much money you have in the bank – this is the amount you
can actually cash out in case you need to!
There would be one line
item in your Balance
Sheet called “Cash and
Cash Equivalents”.
Under this head you will
find all those assets which
are readily convert able
into cash. Money
available in your bank
account sits right in this
account

9. Understanding your tax obligation – The amount that is expected to be
paid out in taxes every year sits right in your Balance Sheet. Search it
out and avoid surprises!
There would an item
under the head - Tax
Payable or Tax
Liability in your
Balance Sheet on the
liabilities side, this is
the approximate
amount you should
be prepared to pay as
your tax!

10. The big question of Equity? What does Equity
really mean
As the owner of the Company, all the
money and the assets you bring into
the company should be returned back
to you one day. This “Owings” from
the company to you comprise Equity.
It could be the money you bought in
for set up/ capital. The assets you gave
the company etc.

11. Get professional help to understand your
numbers
+65 -62212440
team@servolve.com
28 Maxwell Road, 03-
05, Red Dot Building,
Singapore - 069120

12. .Disclaimer
Servolve intends this document only as information material and will not be
held liable for any loss incurred by any person/ organization based on the
information provided in this document. No part of this document may be
reproduced by any unauthorized means by any unauthorized person/s . Any
person wishing to use the document is needed to seek prior permission from
Servolve in writing .
All images are courtesy of Creative Commons / Microsoft Office Clipart