The financial statements you present may affect terms for borrowing or leasing from banks or lenders. If you have, or expect to have, significant borrowing or leasing needs, you may want to discuss your bank's needs and whether improved financial information could reduce your borrowing costs or improve the terms. Of course, the financial statements are also a significant tool to help manage your business. You should make sure you understand what they are telling you. Contact us for additional information.
Improving your bookkeeping may help you manage your business more efficiently and more effectively. While you may be capturing your transactions, you may not be recording them correctly or as efficiently as possible. If you think this could be an issue with your business, we recommend letting our experienced staff evaluate your current bookkeeping system. We can help determine its adequacy and if any processes can be implemented so that your accounting function can become more streamlined.
Click here to read our blog on accounting systems or our article on QuickBooks.
Management normally spends most of its time generating sales of products or services. But, you can't ignore the financial information your bookkeeper generates, because this information provides you with data needed to make changes affecting profitability. You should be able to read and understand your financial statements, as well as, review specific ratios and trends within your business. If you would like assistance in capturing and analyzing this or other relevant data, please feel free to give us a call.
A breakeven analysis is needed to manage almost any business because it provides an overview of how important variables influence profit or loss. Owners and managers are constantly faced with decisions about selling price and cost control. Unless they can make reasonably accurate predictions about the effect of price and cost changes, their decisions may yield undesirable or disastrous results. Common questions that business owners/managers ask are: Do we have to increase our price to be profitable? Can we discount our price and be more profitable? Can we afford to hire a new employee or subcontract out work? In addition, some long-term decisions such as purchasing equipment can be better made using break-even analysis. Break-even analysis is often a crucial part of preparing annual budgets to achieve profit goals. If we can assist you with this analysis please contact our office.