SBE Teaching Resource: Financial Analysis Instructional Unit
Reviewing your daily sales, tracking your deposits, and knowing how much you owe each month to your various vendors may not seem like the most glamorous side of working in your school-based enterprise. But businesses exist to make money, and business owners need to know where that money is at all times.
Financial analysis can seem overwhelming, but four key financial statements can help you keep on top of your business’s monetary situation—and develop a greater appreciation of all that a business must do to turn any kind of profit.
Use DECA's SBE instructional unit on financial analysis (downloadable pamphlet and PowerPoint presentation available here) to explore these four financial statements—the personal financial statement, balance sheet, income statement, and cash flow statement. Each contains its own specific information to help business owners and employees keep track of all the money associated with their businesses—from money tied up in furniture and debts owed to lenders to cash used to buy supplies like paper and pens. Reviewing this unit will reveal to you the importance of all expenses, including the everyday ones, on a business’s bottom line.