Simply the clearest andĀ most comprehensive introduction to financial reporting available. No accounting background is required.
āFinally, a handbook that takes the mystery out of accounting principles.ā āMargi Gandolfi, VP Marketing/Strategic Planning of New York Blood Center
This edition replaces all previous editions of this bestselling title based on the revised and expanded edition corrected and back to the basics.
Financial StatementsĀ is a perfect introduction to financial accounting for non-financial managers, investors, business students, lawyers, lenders, entrepreneurs, and more.Ā Financial StatementsĀ deftly shows that all this accounting and financial-reporting stuff is not rocket science and that anyone can understand it!
Ittelson empowers non-financial managers by clearly and simply demonstrating how the balance sheet, income statement, and cash flow statement work together to offer a snapshot of any companyās financial health. Every term is defined in simple, understandable language. Every concept is explained with a basic, straightforward transaction example. And with the bookās uniquely visual approach, youāll be able to see exactly how each transaction affects the three key financial statements of the enterprise. Each statement paints a different and essential pictureāthe āthree-legged stoolā of company reporting:
- TheĀ income statementĀ shows the manufacturing (or service offerings) and selling actions of the company that result in profit or loss during a period. It gives a very important perspective on the companyās performance, its profitability.
- TheĀ cash flow statementĀ details cash into and out of the company for a period. You need money to make money. Running out of cash is bad. Duh.
- TheĀ balance sheetĀ records at the end of a period, an instant in time, what the company owns and what it owes, including the ownersā stake, called shareholdersā equity.
ABOUT THE AUTHOR

Thomas R. Ittelson is an expert at translating complicated financial topics in an accessible way for non-financial audiences. He is a natural scientist by training (Harvard University in biochemistry) and an entrepreneur. His successes and challenges in for-profit business helped him develop his own accounting acumen and style. He shared that knowledge with others in a book for non-financial managers that has sold over 200,000 copies (Financial Statements: A Step-by-Step Guide to Understanding and Creating Financial Reports, Second Edition, Career Press).
Tomās recent work with nonprofits led him to recognize that non-financial nonprofit board members, managers and staff all require a simple working knowledge of accounting and financial statements to do their job.
With his new book, Nonprofit Accounting & Financial Statements: An Overview for Board, Management, and Staff, Tomās audacious nonprofit āmissionā is to significantly improve the efficiency and effectiveness of U.S. public charities by improving financial literacy within those organizations.