These 5 powerful books can up your business financial literacy game

Last week’s post offered some insight into ways to improve your business financial literacy, and we promised a few books that would help. 

Reading is always a powerful tool, and this list can provide deep insights into business financial literacy from respected entrepreneurs.  It’s a little like getting advice from some of the best business mentors in the country. 

The books in this post are written by well-versed business professionals and should help you get more savvy about business financial literacy. 

Let’s go! 

Financial Intelligence: A Manager’s Guide to Knowing What the Numbers Really Mean” by Karen Berman and Joe Knight

This is a good one if you are new to business finance or simply looking for a better way to make sense of financial data. 

It’s written in clear language. Complicated financial ideas are broken down into terms that are easy to understand. 

One of the more interesting ideas in the book is that financial records aren’t just lists of facts.  They are stories that need to be interpreted by asking questions so that good decisions can be made later. 

The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management by Pamela Peterson Drake and Frank J. Fabozzi

You may have sniffed this one out just by the title. Yes, it’s basically a textbook, and yes, it’s priced like one. 

At over $100 with more than 500 pages written in a textbook style, this isn’t going to win any Pulitzer’s. But it may be just what you need. 

It’s designed for people with no finance background. So, while the writing style may not be terribly engaging, it will give you a solid, no-nonsense foundation in areas like financial strategy, the structure of interest rates, and capital budgeting.  

Altogether, it has fifteen chapters that can help with business and even personal finance. The nice part is that you don’t have to read it from cover to cover to get the full benefit. 

You can pick and choose areas that are most important to you. A nice bonus is that, like a good textbook, it has problems to solve that give you practical experience. 

Accounting Made Simple: Accounting Explained in 100 Pages or Less by Mike Piper

If the last choice left your head swimming, this one may be more your style. Mike Piper delivers on the title’s promise by making complex subjects attainable. 

He writes for the business owner who is a technician, like a chef who also runs a restaurant. It won’t replace your CPA, but it will help you understand them better so they can become a strategic partner for your business. 

At around $12, this one won’t break the bank (that will make your CPA smile), and it won’t give you a headache because it’s written without any technical jargon. 

Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz

If the last title makes your CPA smile, this one may make them cringe. But it will interest them. 

That’s because Mike Michalowicz offers an accounting method that’s a little unorthodox in the accounting world. He proposes entrepreneurs take profit first (hence the name) and use only what’s left over for other expenses. 

He contends doing so helped him eliminate waste in his own companies while helping them grow. 

Even if you disagree with his thesis, the book is worth a read for its fun, informative, and practical style. 

The Bottom Line

You don’t need many courses to improve your business financial literacy. But you do need to invest some time in reading quality books that help you get better. This list will get you started and help you implement financial practices that help your bottom line.