Are you unsure about where your profits are going? Or do you find yourself confused on how to make more income in your business? You’re not alone. Business leaders and owners worldwide face similar challenges with their business finances. But whether you’re starting out or scaling up, these are the best business finance books that can help you build the right foundations.
In this article, we’ll help you win the confusing numbers game and boost your profits and cash flow in the long-run. But before we explore these curated books, here are some of the top tips taken from business finance books in our library.
How to Manage Your Business Finances (Top 7 Tips)
Managing finances can make or break your business. Here are seven of the most important tips to help you manage your financies, improve profits and cash flow.
1. Pay Yourself Regularly
According to a survey in 2022, as much as 26% of business owners make the mistake of forgetting to pay themselves. Instead of reinvesting everything, make it a habit to pay yourself regularly for your personal financial health.
2. Maintain Separate Business and Personal Finances
Mixing personal and business finances will lead to an unhealthy and confusing relationship with money. Keep them separate! This will make financial reporting easier so you can track business performance more effectively.
3. Monitor Cash Flow Diligently
Cash flow is the lifeblood of your business. Make it a habit to track your cash flow, ensuring that you have enough liquid assets like cash to cover your expenses. This step is so critical that many of the books we recommend below focus on the importance of cash flow analysis.
4. Set Aside Taxes Regularly
You’ll easily get caught off guard by a large tax bill by the end of the year if you don’t prepare. In a recent survey by the PPSI, 30% of small business owners and professionals didn’t know and did not set aside money to pay taxes. Set aside a part of your income regularly to cover your taxes throughout the year, so you can pay it all off stress-free.
5. Track Return on Investment (ROI) on Expenses
Know which of your business assets and expenditures are yielding profits. This will help you make informed decisions on where to invest your hard-earned income and cut costs where necessary.
6. Build Strong Business Credit
A solid credit score is essential when seeking loans or funding for business growth. By paying debts on time and maintaining strong credit, you set your business up for future opportunities.
7. Invest in Growth
Don’t focus on just surviving in the present. Allocate resources toward the future such as new innovations, equipment, or employee development. With enough research, you can find great growth opportunities with minimal financial risk.
These are the basics to get you started on financial strategies for your business. But now, let’s now dive into the best books that can help you apply these tips and master your business finances.
7 Best Business Finance Books
Here are our top picks of book recommendations for business finance books that are useful for any finance professional, entrepreneur, or aspiring owners of a successful business.
Profit First by Mike Michalowicz
1-Sentence Summary
Profit First teaches business owners a healthier approach of prioritizing profit over expenses.
What It Teaches You
This book shifts the traditional accounting approach by making profit the top priority. It offers actionable steps, such as setting aside a percentage of income for profit and tracking expenses carefully.
Key Takeaways
Michalowicz introduces an approach which segments business income into different “plates” for profit, taxes, operating expenses, and compensation. This helps business owners get a clear view of their cash flow analysis and make smarter financial decisions.
Best For
Small business owners struggling to maintain profitability.
Favorite Quote
“When profit comes first, it is the focus, and it is never forgotten.”
Book Review
Profit First is an all-time classic book for business owners. Michalowicz provides a simple yet revolutionary way-of-life not only for business but also for personal finances.
With practical and immediately actionable methods, it’s perfect for overwhelmed small business owners. The book’s real strength lies in its simplicity—with tips and actionable steps that are less daunting and more results-oriented.
You can read the free Profit First! summary here.
Financial Intelligence by Karen Berman & Joe Knight
1-Sentence Summary
Financial Intelligence helps simplify financial statements and makes it more accessible to business managers.
What It Teaches You
This book guides you on reading financial statements and using them to make better business decisions.
Key Takeaways
The book helps entrepreneurs and executives develop a deeper understanding of financial metrics. It teaches that financial intelligence is not just about reading balance sheets and income statements. It is also about grasping how financial decisions impact the overall health of the company.
Best For
Managers and business leaders who need to make data-driven decisions.
Favorite Quote
“Financial information is the nervous system of any business.”
Book Review
Financial Intelligence is a must-read for business leaders without a financial background. With this book, Berman and Knight succeed in breaking down complex financial concepts. It fills a crucial gap for non-financial professionals so they can make effective business decisions.
This book helps managers see the bigger picture of how numbers drive business success. It’s ideal for anyone looking to improve their financial literacy and make data-driven decisions.
Read more with our free Financial Intelligence summary here.
The Great Game of Business by Jack Stack
1-Sentence Summary
The Great Game of Business shows how to engage employees in your company’s financial success by helping them think like owners.
What It Teaches You
This book is all about open-book management: teaching employees about the company’s finances so they can contribute to its success.
Key Takeaways
Stack emphasizes the power of open-book management, making financial information accessible to employees. When employees understand the financial aspects, they become more invested in the company’s success. Everyone helps in improving performance, profitability and overall financial health.
Best For
Business managers and owners looking to align team goals with financial outcomes.
Favorite Quote
“The best, most efficient, most profitable way to operate a business is to give everybody in the company a voice in saying how the company is run and a stake in the financial outcome, good or bad.”
Book Review
This book can help you transform your business perspective on finance. Instead of focusing on the numbers game alone, it invites the entire team to play through financial transparency. Stack’s storytelling makes complex financial ideas accessible, with step-by-step guides for implementation. Overall, it’s a valuable resource for any business leader.
Learn more with our free The Great Game of Business summary here.
Simple Numbers, Straight Talk, Big Profits! by Greg Crabtree
1-Sentence Summary
Simple Numbers, Straight Talk, Big Profits! provides a no-nonsense guide to simplifying business finances for greater profitability.
What It Teaches You
Crabtree talks about using key financial data to make better decisions, focusing on metrics like labor efficiency and profitability.
Key Takeaways
The book focuses on impactful indicators such as labor efficiency and pretax profit margins. Crabtree also advises business owners to pay themselves fairly first before calculating profit. These actionable metrics help business owners manage operations better and drive sustainable growth.
Best For
Small business owners seeking a clear and practical approach to business finance.
Favorite Quote
“Profit is like oxygen—your business can’t hold its breath very long without it.”
Book Review
Simple Numbers, Straight Talk, Big Profits! is for business owners who need straightforward financial advice without the jargon. Crabtree distills years of financial experience into practical tips that are easy to implement.
He focuses on key profitability metrics and maintaining clarity in financial decisions. It’s an excellent guide for those seeking a clearer understanding of their numbers and how to use them to grow their businesses sustainably.
Check out our free Simple Numbers, Straight Talk, Big Profits! summary here.
The Personal MBA by Josh Kaufman
1-Sentence Summary
The Personal MBA presents essential business principles in layman’s terms, including finance.
What It Teaches You
Kaufman explains how businesses, people, and systems work together towards success. This book makes subjects like business finance accessible without getting another degree.
Key Takeaways
Kaufman emphasizes on how businesses financial models can drive decisions and strategy. He shows how to apply fundamental but effective principles for value delivery and cash flow management, ensuring financial health and long-term success.
Best For
Entrepreneurs and anyone seeking a practical business education without an MBA.
Favorite Quote
“The more hassle you eliminate for your customers, the more you’ll collect in revenue.”
Book Review
The Personal MBA demystifies business concepts, including finance, for the self-taught entrepreneur. Kaufman simplifies many key business principles like cash flow management, value creation, and pricing strategies.
This all-in-one book is excellent for anyone looking to build a solid foundation in business without investing in an expensive MBA program.
Find out more with our free summary of The Personal MBA here.
The E-Myth Revisited by Michael E. Gerber
1-Sentence Summary
The E-Myth Revisited helps entrepreneurs achieve financial freedom by building self-sustaining businesses.
What It Teaches You
Gerber reveals the truth behind the e-myth of true blue entrepreneurs. Instead, he highlights how your business is an extension of who you are, and how you can build a sustainable business.
Key Takeaways
Gerber argues that many entrepreneurs fail because they get caught up in working in their businesses rather than on them. This not only improves operational efficiency but also drives profitability. Gerber’s approach empowers business owners to find a balance in themselves so their businesses can grow sustainably.
Best For
Entrepreneurs who feel overwhelmed by daily operations and want financial freedom.
Favorite Quote
“Your business is nothing more than a distinct reflection of who you are.”
Book Review
With this book, Gerber offers a powerful shift in perspective for entrepreneurs. The book’s core message of working on your business rather than in it becomes powerful when you’re overwhelmed by the day-to-day grind.
The book offers practical guidance on how to build a business that runs smoothly without you. It’s an essential read for those aiming for scalable financial and operational success.
Check out our free The E-Myth Revisited summary here.
The Total Money Makeover by Dave Ramsey
1-Sentence Summary
The Total Money Makeover provides a step-by-step plan for achieving financial independence.
What It Teaches You
Ramsey’s book focuses on building financial discipline and eliminating debt through his 7-step Baby Step plan. This focuses on your financial freedom as a whole and how you can look forward to building personal wealth long-term.
Key Takeaways
This is a personal finance book that debunks common myths about debt and wealth-building. Ramsay offers a straightforward plan that starts with saving just $1,000. He also teaches key lessons on wealth: how to pay off personal and business debts using the “debt snowball” method.
Overall, he emphasizes that financial freedom is not about getting rich quickly. It’s about building wealth over time.
Best For
Anyone struggling with debt (personal and business) or looking to take control of their financial future.
Favorite Quote
“The secrets of the rich don’t exist, because the principles aren’t a secret.”
Book Review
The Total Money Makeover is a straightforward, no-nonsense guide to financial management. It takes Ramsay’s learnings from his own bankruptcy and turns it into a step-by-step plan for building wealth.
His tough-love approach makes it excellent for business owners juggling both personal and business finances.
Learn more from our free The Total Money Makeover summary here.
Bonus Business Finance Books
Looking for more recommendations? Here are a few of our bonus business books:
The Lean Startup by Eric Ries
This book nails down the basics of launching and scaling businesses.
It emphasizes on continuous testing and refining through customer feedback. This accelerates innovation while minimizing financial risks and time wastage. It’s an essential read for entrepreneurs looking to optimize resources and learn faster than the competition.
Find out more about this book with our free Lean Startup summary.
HBR Guide to Finance Basics for Managers by Harvard Business Review
This guide simplifies the essential financial concepts managers need to know, such as understanding financial statements, budgeting, and cash flow management.
Designed for non-financial managers, the book makes it easy to grasp financial data and apply it to everyday business decisions. It’s a valuable resource for anyone looking to build a strong foundation in finance without diving into advanced technical details.
Conclusion
Mastering business finance is crucial for any entrepreneur or manager. These bestselling finance books will give you actionable advice so you can build a profitable cash cow and watch your profits soar!
Start applying these strategies today, and make smarter financial choices that lead to both personal and business success.
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