THE EFFECTIVE USE OF FINANCIAL STATEMENTS

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Financial Statements are an important management tool. When correctly prepared and properly interpret, they contribute to the understanding of the current financial condition, problems and possibilities of a company.We have prepared a sample of the following statements:

• The Balance Sheet – referred to as The Statement of Financial Condition or The Statement of Financial Position;
• The Income Statement – sometimes called the Statement of Operations or the Profit and Loss Statement; and
• The Statement of Cash Flows – formerly known as the Statement of Changes in Financial Position.

These statements are essential to the efficient conduct of your business. Yet they can only help you in the decision making process if they are interpreted and explained properly. The staff of professionals at our office will assist you in the interpretations and explanations.

Ratio Analysis

Included are some ratios, analytical keys for analyzing the performance of your business. They can be used to measure:

                        •  Operating Efficiency;
                        •  Safety and Liquidity; and
                        •  Return on Investments.

There are many ways and approaches in gaining understanding about your company from your financial statements. These include:

                        •  careful study of the financial statement notes; 
                        •  explanation of the company’s accounting policies; and
                        •  analysis of operations by division or product line.

We can assist in developing procedures which may be peculiar to your operation or industry and which will be helpful to you on a day to day operating basis.

BALANCE SHEET To Top   INCOME STATEMENT To Top STATEMENT OF CASH FLOWS To Top RATIO ANALYSIS

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