Accounting and Finance for Beginners

I first wrote this book more than two decades ago when I was training teams inside large, publicly traded companies. My role was to translate the mysterious world of financials into something that employees—from new hires to executives—could actually understand and use. At the time, it felt like a one-off project. A manual to get people up to speed on accounting fundamentals. I never imagined how often I’d reach back for it in the years to come. What I didn’t realize then—but have seen repeatedly since—is how few people, even brilliant business minds, truly understand their numbers. Since those early years, I’ve spent the bulk of my career in the trenches of small to midsize businesses—startups, turnarounds, bankruptcies, family-owned enterprises, and private equity-backed roll-ups. These are gritty, high-stakes situations where every decision counts and the margin for error is razor thin. Time and again, I watched organizations crumble—not because they lacked heart, hustle, or innovation—but because no one knew their darn numbers. And let me be clear: knowing your numbers is not about having a dashboard filled with colorful arrows that point up or down. It's not about checking off financial KPIs just to make the board happy. It's about understanding the story the numbers are telling you. Where you’ve been. Where you’re headed. And what’s likely to happen next if you keep doing what you’re doing. When people—at every level of the organization—truly grasp the financials, something magical happens. It’s no longer just “finance’s job” or “something the accountant deals with.” Suddenly, every team member can see how their choices connect to profit, cash flow, and sustainability. It becomes a shared language and a shared responsibility. If you’re reading this, you’ve already taken the first step: you’re curious. You understand that finance isn’t something you can outsource completely—not if you want to lead well. Not if you want to sleep at night. That curiosity is your greatest asset. Because the biggest myth I’ve encountered over the years is that accounting is too complicated for “non-financial people.” I disagree. Accounting isn’t rocket science. It’s not open-heart surgery. But it is a structured, logical system—a language—and like any language, it takes practice. You’ll fall off the bike a few times. That’s okay. The point is to get back on. I won’t pretend this book will turn you into a CPA or financial analyst. It won’t. That’s not the point. What this book will do is give you a framework. It will help you understand the most critical concepts that underpin every business decision—whether you're launching a startup, managing operations, pitching investors, or running a family business on a tight budget. You’ll learn how to read financial statements—not skim them. You’ll understand the meaning behind margins, overhead, fixed vs. variable costs, and why cash flow is not the same as profit (a mistake that has tanked more businesses than I care to count). You’ll gain fluency in the financial basics—enough to ask better questions, spot red flags, and make informed decisions. That’s what “knowing your darn numbers” really means. Throughout this book, you’ll also find real-life case studies from my career. These aren’t stories from textbooks. They’re stories from boardrooms and breakrooms, warehouses and workshops. Stories where success was achieved—or lost—based entirely on how well the people involved understood the numbers. I’ve changed the names for privacy, but the situations are real. In one case, a family lost a nine-figure fortune because they handed the reins to advisors who themselves didn’t understand the financial risks they were taking. In another, a business owner poured millions into an exotic car dealership, only to discover the “inventory” was a collection of unsellable junk vehicles financed through fraudulent means. And still another case—perhaps the most tragic—involved an 87-year-old family business that collapsed after nearly $10 million was stolen right under the noses of leadership, all because they had dismantled their internal controls. What these cases have in common is not just financial loss, but avoidable loss. Painful outcomes that could have been prevented if just one person had paused and said, “Wait, let me understand what these numbers are actually telling me.” This book isn’t about perfection. It’s about awareness. And clarity. And yes—confidence. Confidence that comes from being able to look at your balance sheet and understand what’s healthy and what’s risky. Confidence in creating a budget that isn’t just aspirational, but achievable. Confidence in saying no to a bad deal, even when everyone else is nodding yes. Confidence in mentoring your team and helping them understand how their day-to-day efforts impact the company’s financial health. And perhaps most importantly, confidence in trusting your gut—because it’s backed by numbers you understand. You’ll also find tools, frameworks, and exercises that you can apply immediately to your own situation. These are things I use in real life—not just theories. You’ll see how to calculate key ratios, stress-test cash flow, and avoid the common traps that can quietly bankrupt even a growing business. This is your almanac. Your financial compass. Your “gut check” when things feel off. Let me say it again: this isn’t a get-rich-quick book. It’s not a slick investment playbook or a collection of buzzwords. It’s a working manual. A survival guide. A set of practical tools and straight talk for anyone who’s ever felt just a little intimidated by a financial statement—or just wanted to feel more in control. Because here’s the truth: no matter what industry you’re in, no matter what role you play, you will be your own accountant more often than you think. At some point, you’ll be the one making calls on budgets, hiring, pricing, or strategic investments. You’ll be the one with a gut instinct—and the numbers to back it up (or challenge it). And when that moment comes, I want you to be ready. So whether you’re a founder, operator, team leader, investor, advisor, or just a curious learner—welcome. Let’s get to work. Let’s get to know your darn numbers.