Welcome3:10 with Michael Watson
Introducing financial statements and why it's useful to know how to read them.
[MUSIC] 0:00 Hi, I'm Michael Watson, the CFO here at Treehouse, and 0:09 I'm super excited to welcome to the financial statement basics course. 0:12 Understanding how to read financial statements is an incredibly useful skill 0:18 that can help all of us, both personally and professionally. 0:23 However, because the conversations surrounding financial statements 0:27 can be can quite high stakes, people are often intimidated by them. 0:31 The CEO is asking questions about that, or 0:36 this investment bankers talking about XYZ, and I have no clue what is happening. 0:39 Well, the funny thing is that often times, 0:45 these people have no clue what they're talking about either [LAUGH]. 0:48 Seriously though, these consequential conversations with smart, 0:52 powerful people can scare folks. 0:56 And sometimes, they never get around to learning this important skill. 0:58 Well, enough of that. 1:02 We've put together an approachable, easy to understand course, that will give you 1:04 all the essentials you need to continue to develop your financial acumen. 1:09 As I said earlier, understanding how to read financial statements is very useful. 1:14 Financial statements tell a story about the financial performance of a business or 1:19 organization. 1:24 It doesn't matter if you're working in the private sector, for the government, or 1:25 a nonprofit, financial statements are an important part of governing any entity. 1:30 They help us understand what is going well and what isn't. 1:35 Do the strategy we adopted two years ago translates to the results today? 1:38 Clearly, being able to talk coherently to this subject matter, 1:43 is a very useful skill to your career development. 1:47 There aren't many senior managers out there who are unable to read profit and 1:51 law statements for example. 1:55 Having some basic accounting knowledge will help you digest this course better, 1:57 which shouldn't come as a surprise. 2:01 It is accounting principles that create the framework for 2:03 financial statements to be prepared, specifically journal entries and accounts. 2:07 Without accounting, there would be no financial statements of value. 2:12 That said, a deep understanding of accounting is not a necessary prerequisite 2:17 for this course, so if you don't know anything about accounting, don't sweat it. 2:21 You'll still be able to follow and learn from this course, and 2:26 we'll cover some basic foundation stuff in the next video. 2:30 Also remember, if you have any questions while taking the course, go ahead and 2:33 navigate to the community section of Treehouse, and ask your fellow students. 2:37 Feel free to tag me directly with a question, I love interacting with 2:42 our amazing Treehouse students, and it's one of the best parts of my job. 2:46 In the following videos of this stage, 2:51 we'll briefly cover some accounting basics. 2:53 And in stage two of the course, get into the actual financial statements, 2:56 starting with the profit and loss statement. 3:00 If you're not interested in a short overview of accounting principles and 3:02 recognition concepts, feel free to skip to stage two. 3:06
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