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and Preparation

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and Recordkeeping

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  Information Station

We can prepare or supervise the preparation of your financial statements. Compiled or reviewed statements can be provided 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. The supplementary information in the financial statements is tailored to meet your specific needs. These can include budget variance reports, gross margin reports, reports by division and/or location, comparison of ratios to industry standards, and pertinent charts and graphs. We will be pleased to work with you in designing reports which are meaningful to your profit planning.

Good financial records are necessary for several reasons:

• Daily operating decisions are based on financial reports.
• Bank loans require reports of past performance.
• Tax return numbers need proper substantiation.

Here are some common business ratios you should monitor on a month-by-month and a year-by-year basis:

• Current Ratio - Current assets divided by current liabilities will measure your ability to pay your current debts.

• Debt to Equity Ratio ­ total liabilities divided by net worth will provide you with a year-to-year comparison of your ownership in the company.

• Receivables Outstanding ­ Receivables divided by average day's sales will give you the number of days' sales on the books.

• Profit Margin ­ Gross profit divided by net sales is one of the most important numbers for you to monitor regularly.

You can learn more about directing your net profit!

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.