Business builder

Understanding your finances

In this module you’ll explore:

  • How viability underpins the business model
  • The importance of knowing your numbers and what they can tell you about your business
  • Key financial terms you need to know
  • Three key financial statements

Start by downloading and saving the workbook (PDF 2.0MB) to your computer, to use throughout the module, capturing any key takeaways and completing the exercises at the end of each chapter.

Why is understanding your finances important?

Let’s start with the basics… Why is understanding your finances important? In the first chapter, we’ll look at the importance of understanding the viability of your business model and what knowing your numbers can tell you about your business.

Jargon busting

In the next chapter we’re going to explore some key financial terms and do some jargon busting. Many of you will be already be familiar with some or all of these terms but, for those who aren’t, knowing these terms and what they mean is half the battle when it comes to knowing your numbers!

These are also in your workbooks so take notes where you need to.

Financial statements

Understanding your finances doesn’t have to be daunting. In this chapter we’ll introduce you to three key financial statements that will help you to understand and manage your finances within your business.

Download our workbook

Understanding your Finances workbook (PDF 2.0MB)

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This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of the NatWest Group Economics Department, as of this date and are subject to change without notice.

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