Our Services

Financial Statements

We can prepare or supervise the preparation of your financial statements according to your needs. More importantly, we can help you use these statements, as well as other reports, to better manage your business and increase your profitability.

Why Good Financial Records Matter

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 payables with prior years to spot problems and then quickly take corrective action.

Key Business Ratios to Monitor

Track these on a month-by-month and year-by-year basis:

Current Ratio

Current assets ÷ current liabilities

Measures your ability to pay your current debts.

Debt to Equity Ratio

Total liabilities ÷ net worth

Provides a year-to-year comparison of your ownership in the company.

Receivables Outstanding

Receivables ÷ average day's sales

Gives you the number of days' sales on the books.

Profit Margin

Gross profit ÷ net sales

Allows you to compare your business operations to other companies in your industry, as well as monitor your own operations over time.

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.