What is financial analysis?
Apart from your legal obligations to keep records, good financial documentation forms the basis of creating financial statements that will paint a true picture of your business. Establishing systems to maintain accurate, up to date financial records will ensure you have the information necessary to make sound business decisions.
Financial statements provide a summary of all the relevant financial information about a business. Financial analysis can then be performed on these statements to provide management with a more detailed understanding of the figures and the business. Owners and managers can use the information provided in the financial statements to make key decisions that affect the ongoing operation of a business.
Financial analysis can tell you a lot about the performance of your business and will help you to determine the overall financial health of your business. Issues such as liquidity (does the business have enough cash to pay its debts on time) and profit (the percentage of net profit to total sales) are only part of the financial analysis of your business that puts the information from your financial statements into perspective. Financial analysis will help you identify problems, implement the necessary corrective actions, identify efficiency and cost saving measures and improve your operations.
Why outsource financial analysis?
Sometimes a small business owner and their team are too close to everyday processes to look at the whole picture.
Using an independent professional for financial analysis has the following benefits:
- You can choose when and how long you need their services.
- You benefit from a wide range of skills and experience.
- They may be able to identify cost saving measures you hadn't considered.
- Analysis of the data may show your financials in another light.
Why Dukes Management Services?
My mathematical and logical brain makes me extremely comfortable with numerical analysis. Being involved in running small businesses for many years has made me acutely aware of the difference small changes can make to profitability. I am very proficient at using Excel for data analysis and can present management information in a way that less numerically fluent Directors can understand.
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Tel: 01296 770794 Email: email@example.com