Students often learn accounting in a theoretical environment. In the real world, accounting is messy, and sometimes the bookkeeping staff is undertrained and overworked. Owners often don’t place a lot of priority on their bookkeeping, and this leads to problems.
This video focusses on the need for caution in looking at small business financial statements. It begins by identifying important but often overlooked financial statements: the statement of cash flows, the statement of owner’s equity, and notes to financial statements.