What are the most important things to review and understand when you review your business financials?

1.         Income Statement: revenue, costs, profit margins, and changes over time
2.         Balance Sheet: assets, liabilities, equity, and changes over time
3.         Cash Flow Statement: operating, investing, financing activities and overall cash position
4.         Financial Ratios: liquidity, solvency, profitability, efficiency and growth
5.         Budget Performance: comparing actual financial results to budgeted expectations
6.         Sales Trends: identifying growth or decline in revenue and sales
7.         Cost Analysis: identifying cost drivers and areas for cost reduction
8.         Gross Profit Margins: review of sales revenue minus cost of goods sold
9.         Overhead Costs: review of operating expenses such as rent, salaries, utilities, and insurance
10.       Debt Analysis: understanding and monitoring levels of debt and debt repayment capacity
11.       Accounts Receivable: tracking and managing customer payments
12.       Inventory Management: tracking and managing inventory levels and costs
13.       Accounts Payable: tracking and managing vendor payments and expenses
14.       Capital Expenditures: tracking and analysing expenditures on long-term assets
15.       Tax Planning: analysing current tax position and identifying tax saving opportunities
16.       Key Performance Indicators (KPIs): tracking important metrics to measure business performance
17.       Budgeting and Forecasting: creating accurate financial projections for future periods
18.       Market and Industry Trends: analysing market and industry changes to make informed decisions
19.       Break-Even Analysis: determining the point at which revenue covers all expenses
20.       Profit and Loss Analysis: reviewing financial performance over time to make informed decisions.

EOACC accountants and business advisors can help you understand your numbers, so get in touch.