These are the key steps to reading financial statements that let you focus quickly on what you need to know most.
- Look at your numbers as compared to the same period of time last year, last quarter, etc.
What is the change in dollars and in percentage?
Do you understand the reasons for the changes?
- Look at the key numbers as a percentage of Revenue on your Profit & Loss
- Look at key ratios between numbers on your Balance Sheet
How do these percentages and ratios compare to last year?
What trends are occurring over time?
- Check your results in relation to your budget and your cash flow projection.
Are you on track?
What do you need to do next to get the results you want?
Having a professional bookkeeper who presents your statements to you in the above format, based on fully current and reconciled accounts, will save you time, give you key information, and ensure you know what you need to know most.
Call today and let me assist you to save time and have more confidence in your numbers.