Financial Intelligence For Entrepreneurs- What You Really Need To Know About The Numbers -harvard Financial Intelligence- -

"Yes."

"Excuse me?"

Elena didn’t get an MBA. She got curious . Three months later, her bank balance was $18,000

"But they’re big accounts!" Elena protested.

Three months later, her bank balance was $18,000. Her profit was only $12,000 (down from $15,000), but she didn't care. Leo showed her how her accountant had estimated

Within six months, she was in three grocery stores and had hired six friends.

Leo showed her how her accountant had estimated "depreciation" on the juicer and "bad debt" from customers who wouldn’t pay. "These aren't real expenses yet," Leo said. "But they are intelligent guesses about the future. Financial intelligence means knowing which numbers are hard facts (the rent) and which are soft estimates (the useful life of a lemon press)." Three months later

"Your grocery store accounts are huge," Leo continued. "But they return 15% of your batch because it sits on their shelf too long. After refunds and late payments, you’re actually losing $2 on every case you sell them."