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Amazon.com: Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports eBook: Thomas R. Ittelson: Kindle Store


A solid foundation is critical to understanding concepts. So you'd think most books would spend a lot of time ensuring and clarifying the basics, right? Wrong! Simply not true! Most of the accounting/finance books just don't get into clarifying the very basics - the confusing array of terms used, how they fit together, what they actually mean in a real world setting, etc.This book - a must on every manager’s shelf - adds value by providing clear and concise definitions and relates them visually. The chapter on connections ties a lot of information together with such ease. Above all the step by step examples go a long long way into clarifying any remaining confusion you'd have. It is very easy to read. You'd probably finish it over a weekend. So it is tremendous bang for buck.Clearly the first introductory book one should read. There are plenty of good books for the next level (IMHO).**_Simply go get it - read it. Enjoy the clarity in your decision making. Highly recommended._**Here is a list of books that might also help.Introductory level:1. Financial statements (Thomas Ittelson, this book)2. How to use financial statements: A guide to understanding the numbers (James Bandler)3. How to read a financial report: wringing vital signs out of numbers (John A. Tracy)Next Level:4. Financial Statement Analysis: the investors self study to interpretting & analyzing financial statements, revised edition (Charles J. Woelfel)5. Analysis For Financial Management (Robert C. Higgins) - This is one excellent book.6. Techniques Of Financial Analysis: A Modern Approach (Eric A. Helfert)7. Finance & Accounting for Nonfinancial Managers (Steven A. Finkler)MBA Level:7. The Analysis And Use Of Financial Statements (Gerald White, Sondhi, et. al) - dense reading (plus the plain format of this version of the book is sure to make you fall asleep. Hats off to you if you can read this book cover to cover. :).)8. Also Corporate Finance: theory and practice (Damodaran) has a very good advanced level introductory chapter. Pick it up at a library and ...If you had to buy 1 book:I'd recommend - #1 above.If you could buy 2 books (over time):I'd recommend - #1 and #5 above.If you could buy 3 books (for an in depth managerial understanding):I'd recommend - #1, #5 and #6 above.#7 - has a decent cd of spreadsheets for ready use (proforma cash flows, ledgers, etc; very handy)Good luck!************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************************It has been 9 years since I first wrote this review and I felt like it was time I updated it. While, I continue to be interested in this topic (and my quest to find simple, educational and illustrative books is always ongoing), there are a few noteworthy books that I intend to add to this essentially solid list of “accounting/finance absolutely elementary” books. So here it is. And importantly thank you for your feedback and comments. Many of you have written asking me to update this list. I welcome and appreciate your feedback.My position and recommendation is essentially

the same (after all these years). **__This book continues to be the __very best__ introductory book on this topic__**. No two ways about it – **_Simply go get it - read it. Enjoy the clarity in your decision making. Highly recommended._**Introductory level:1. Financial statements (Thomas Ittelson, this book)2. How to use financial statements: a guide to understanding the numbers (James Bandler)3. How to read a financial report: wringing vital signs out of numbers (John A. Tracy and Tage Tracy)4. Bookkeepers boot camp: get a grip on accounting basics (Angie Mohr) Infact, Angie Mohr has written an excellent series of 3 books which I will compare and rate below: - Bookkeepers boot camp: get a grip on accounting basics (Angie Mohr) - Finance & grow your new business: get a grip on the money (Angie Mohr) - Financial management 101: get a grip on your business numbers (Angie Mohr)Next Level:5. Managing by the numbers: a commonsense guide to understanding and using your company’s financials (Chuck Kremer and Ron Rizzuto with John Case) Part 2 of this book - "Understanding the big picture" is especially excellent. A financial scorecard tool (pg 68 & 69) is just fantastic and describes how linkages between the statements really work. Its worth buying this book just for this section, IMHO.6. Financial intelligence, revised edition: a managers guide to knowing what the numbers really mean (Karen Berman and Joe Knight)7. Accounting for the numberphobic: a survival guide for small business owners (Dawn Fotopulos)8. Financial statement analysis: the investors self-study to interpreting & analyzing financial statements, revised edition (Charles J. Woelfel)9. Analysis for financial management (Robert C. Higgins) - This is one excellent book.10. Financial analysis tools and techniques: a guide for managers (Eric A. Helfert)11. Finance & accounting for nonfinancial managers (Steven A. Finkler)MBA Level:12. Principles of finance with excel (Simon Benninga) – Another excellent and practical book (help you translate your learnings into excel)- BTW, Simon Benninga has written a super awesome MBA level textbook in “Financial Modelling”13. Corporate finance: theory and practice (Damodaran)- Corporate finance is a dated but good verbose detailed text book. It has a very good advanced level introductory chapter on financial statements. Pick it up at a library and ...** If you had to buy 1 book: I'd recommend - #1 above.** If you could buy 2 books (over time): I'd recommend - #1 and #4 above. (my recommendation has changed)** If you could buy 3 books (for an in depth managerial understanding): I'd recommend - #1, #4 and #5 above. (my recommendation has changed)** If you want a solid grasp (i.e. mastery) of this topic: I'd recommend - #1, #4, #5, #9 and #12. (i agree, it’s a few books)** If you are a startup or a small business and want a managerial understanding: I’d recommend - #1, #4 (the entire set of 3 books), and #5 above. (and you can have meaningful conversations with your accountant)

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