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Market Measure Report

Trainer’s Corner: Focus on Financials

In this month’s issue of Hardware Retailing, the Market Measure report includes results from NHPA’s 2020 Cost of Doing Business Study, a valuable tool as you make plans for the coming year. By comparing numbers in this study against your own financial records, you can gauge the health of your overall operation and identify areas of your business that need special attention in 2021. 

Are you making the most of this valuable report? If you or any of your staff have questions about the meaning of the numbers in your financial statements, NHPA has a training tool to help. The course in Basic Retail Accounting from NHPA offers a refresher on the basic terms and numbers found in typical financial statements. In this course, you’ll learn about the various numbers in the income statement, the balance sheet and key financial ratios, and how they can help you draw conclusions about your business and plan for the coming year. 

This online course is available to NHPA Training Members. If you want to learn more about becoming an NHPA Training Member, visit nrha.org/membership or call 800-772-4424.

Basic Retail Accounting

Introduction to the Income Statement and Balance Sheet. This module explains why it is important to understand financial statements and the difference between the two documents covered in the course. 

The Income Statement. After learning how to read this statement, you will understand where you are spending your money and how much you are making. 

The Balance Sheet. By studying the balance sheet, you can see how well you are managing your business and how much profit you have in it. 

Financial Ratios. Combine the raw numbers used in the income statement and balance sheet to draw conclusions about your business. Use these ratios to develop your strategy for improving your operation. 

About Jesse Carleton

Jesse Carleton has visited independent hardware retailers, conducted original research on the industry and written extensively about the business of hardware retailing. Jesse has written for more than a dozen of NHPA’s contract publishing titles, all related to the hardware retailing industry. He also was instrumental in developing the Basic Training in Hardware Retailing courses now used by thousands of retailers across the country.

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