Financial Statement & Accounting Service
Use your financial reports to increase your profit!
We can prepare or supervise the preparation of your financial statements. Compiled, reviewed, or audited statements can be provided according to your needs. More importantly, we can help you use these statements, as well as other reports, to better manage your business and increase your profitability.
Good financial records are necessary for several reasons:
- Daily operating decisions are based on financial.
- Banks loans require of past performance.
- Tax return numbers need proper substantiation.
Prepare financial reports monthly
For year-to-date comparisons and to make informed 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 July, 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 action. Accounting software such as QuickBooks® can help you prepare monthly financial reports.
The use of ratios can help provide insight to your company’s financial health
Here are some common financial ratios you should monitor on a month-by-month and a year-by-year basis:
- Current Ratio = current assets divided by current liabilities will measure your ability to pay your current debts.
- Debt-to-Equity Ratio = total liabilities divided by net worth will provide you with a year-to-year comparison of your ownership in the company.
- Receivables Outstanding = receivables divided by average day’s sales will give you the number of days sales on the books.
- Profit Margin = gross profit divided by net sales is one of the most important numbers for you to monitor regularly.
If you 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.
Please contact us today for an initial conference, free of charge, to discuss the preparation of your financial statements.
