If you’re not a numbers person, finance is daunting. But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. How can you boost your financial acumen? How do you decide which concepts are most important to understand to your work and your understanding of the business? And who’s in the best position to offer advice?
How to Improve Your Finance Skills (Even If You Hate Numbers)
If you’re not a numbers person, finance is a daunting subject. But understanding concepts like EBITDA and net present value are important no matter where you sit on the org chart. Here are some strategies for boosting your financial acumen. Get acquainted with your company’s income statement. Reproduce the numbers in a spreadsheet then group them into categories of profit and loss. Your goal is to understand how much your company spends and where it makes money. Play with the numbers. Experiment with the figures on the balance sheet by going through a series of “what if” scenarios. What if prices were lower? What if revenue was higher? This exercise helps you internalize how financial models work. Find a financial mentor. Foster a relationship with a senior financial or operations manager who can teach you and answer your questions. This person can also serve as a sounding board for financial decisions you need to make.