How to Read Your Numbers Like a CEO: A Guide for Service-Based Founders
Let’s be honest: most founders don’t feel confident with financial reports.
That doesn’t mean you’re bad at business. It means no one has ever explained it in a way that’s actually useful.
At Goldi Group, we believe numbers shouldn’t be scary—they should be empowering.
If you want to step into your CEO role with confidence, here are the 3 reports every service-based founder should know, and how to use them to make better decisions:
1. The Profit & Loss Statement (P&L)
Also known as your income statement, this report shows your revenue, expenses, and net profit over a set time period.
What to look for:
Are you generating consistent revenue?
What are your biggest expense categories?
Is your profit growing over time?
✅ Pro tip: Don’t just look at total profit—look at profit margins (profit as a % of revenue). This helps you understand efficiency and scalability.
2. The Balance Sheet
This shows what your business owns (assets) and what it owes (liabilities), plus what’s left for you (equity).
What to look for:
Are you building retained earnings, or constantly drawing them out?
Do you owe more than you own?
How much working capital do you have (i.e., cash + receivables minus payables)?
✅ Pro tip: A strong balance sheet means resilience. It's what banks and investors look at first.
3. The Cash Flow Forecast
Cash is oxygen. You can be profitable on paper and still run out of cash.
We help clients build 12-month rolling forecasts that show:
When tax is due
When major expenses hit
How hiring or new clients will affect your bank balance
✅ Pro tip: Don’t leave this to your accountant once a year. Review it monthly so you can stay ahead.
Knowing your numbers isn’t about becoming a spreadsheet nerd. It’s about:
Feeling confident with decisions
Being proactive, not reactive
Leading your business like a CEO
📌 When you understand your numbers, you stop operating in the dark—and start building with intention.