If you are due to file accounts with…
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.