Reading Reflection Week #10

Financial Preparation for Entrepreneurial Ventures

1)    What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? 

a.    Nothing in this chapter surprised me as I have taken several accounting classes that explain this information, moreover, I have worked so that I have to utilize financial statements, namely variance reports as well as the P&L.

2)    Identify at least one part of the reading that was confusing to you.

a.    Again, nothing was confusing for me in this chapter because I have had access to these reports, however, I would say that this author might use this chapter to explain when and why you use particular parts of the financial statements, as opposed to simply tell them what is on it. This information is convoluted enough in an accounting class where you build upon concepts, without introducing these reports in an entrepreneurial textbook.

3)    If you were able to ask two questions to the author, what would you ask? Why?

1.    You did not name the variance report as an important report for entrepreneurs. When would you consider this report important, as I feel you need to see where you were heading and how far from that goal you happened to end?

2.     If someone was new to business how would they know how to ready financial reports? It says in the opening of the book, that small company managers are inclined to delegate to outside accountants every decision about their companies’ financial statements, but if the manager really has no accounting knowledge, how can they give good input to the financial issues?

4)    Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

a.    I did not find anything wrong, except it was a little cumbersome for an entrepreneurial class. I think there should be more about the value in understanding the processes – and examples of real companies who failed because of their lack of financial expertise.