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Ways to improve Finance Skills

Finance is a daunting subject for someone who is not a numbers person. But understanding concepts like EBITDA and net present value are important no matter where you sit on the org chart. Here are some strategies for boosting your financial acumen. Get acquainted with your company’s income statement. Reproduce the numbers in a spreadsheet then group them into categories of profit and loss. Your goal is to understand how much your company spends and where it makes money. Play with the numbers. Experiment with the figures on the balance sheet by going through a series of “what if” scenarios. What if prices were lower? What if revenue was higher? This exercise helps you internalize how financial models work. Find a financial mentor. Foster a relationship with a senior financial or operations manager who can teach you and answer your questions. This person can also serve as a sounding board for financial decisions you need to make. Read more at: https://hbr.org/2017/03/how-to-improve-your-finance-skills-even-if-you-hate-numbers

 

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