can prepare or supervise the preparation of your financial
statements. Compiled, reviewed, or audited statements can
be provided according to your needs.
we can help you use these statements, as well as other reports,
to better manage your business and increase your profitability.
financial records are necessary for several reasons:
operating decisions are based on financial reports.
loans require reports of past performance.
return numbers need proper substantiation.
financial reports monthly.
For year-to-date comparisons and to make quick management
decisions, financial reports must be done monthly. "As goes
the month, so goes the year." You can compare the sales, gross
profit, and net profit at, say, the end of May, with prior
years and get a good idea of how the current year will finish.
You can compare the total accounts receivable or payables
with prior years to spot problems and then quickly take corrective
are some common business ratios you should monitor on a month-by-month
and a year-by-year basis:
Ratio - Current assets divided by current liabilities
will measure your ability to pay your current debts.
to Equity Ratio Total liabilities divided
by net worth will provide you with a year-to-year comparison
of your ownership in the company.
Outstanding Receivables divided by average
day's sales will give you the number of days'
sales on the books.
Margin Gross profit divided by net sales
is one of the most important numbers for you to monitor
can learn more about directing your net profit!
would like to learn more about using financial statements
to make sound business decisions, we would be happy to assist
you. No one was born understanding financial information,
but it is easier to learn than most people think.
ask as many questions as you like; we will help you until
you are comfortable with business numbers and can use yours
to increase your profitability.