Financial Statement Preparation
We can help you prepare financial statements.
Good financial records are necessary for several reasons:
- Daily operating decisions are based on financial reports.
- Bank loans require reports of past performance.
- Tax return numbers need proper substantiation.
Prepare 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 accounts payable with prior years to spot problems and then quickly take corrective action.
Here are some common business ratios you should monitor on a month-by-month and a year-by-year basis:
Gross profit divided by net sales will allow you to compare your business operations to that of other companies over time.
Let Us Help
Understanding financial statements can increase business profits. 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 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.