Interpreting Your Financial Statements
Financial statements are the life-blood of any properly detailed financial portfolio and my Woodland Hills accounting staff and I offer expert guidance in financial statement analysis. We help you to create and interpret your company’s balance sheets, income statements, cash flow statement, and any other relevant financial statements. Even if your company is not publicly held, and thus does not have to disclose financial statements, private firms often reap many benefits from going through the process of compiling financial statements.
Financial Statement Analysis
Even if you’re a sole proprietor, you may find organizing your personal financial statements an incredibly complex and daunting tax. If you’re a larger firm (perhaps a small business start-up) with a variety of income streams and investments, then your task will be even more of a challenge. When every dollar counts, being able to interpret and then act on the information in a financial statement may make the difference in whether you fail or succeed.
My Woodland Hills accounting staff and I will meticulously comb through every single financial statement personally relevant to your business, whether they be your own statements or those of other firms you are invested in. We combine a detail-oriented methodology with an infinite level of patience and understanding to help you, the customer, comprehend how each statement reflects the strengths and weaknesses of your firm and how all the financial statements work together, creating a larger picture for your financial portfolio.
Understanding Financial Statements
- Balance Sheet: Your balance sheet is like a snapshot of your company’s financial position at a given point in time. It shows you what assets your company owns or is owed, and the liabilities your company owes to others. In other words, it shows you where your company’s funds are coming from and how you are using them. This information can be used for annual reporting, to help investors and creditors assess the worth of your firm, and as a benchmark you can use to measure your success.
- Income Statement: The Income statement shows you a more detailed picture of your revenues and expenses, from your month to month sales to your cost of goods sold. There are several ratios we can use in conjunction with the information on your income statement to determine things like your profit margin and your receivables turnover.
- Cash Flow Statement: The cash flow statement reflects your firm’s liquidity. For a new business, cash flow is often a concern. Together, we’ll go over the cash coming into and going out of your firm and determine where adjustments can be made to improve your liquidity.
Whether you’re located in Ventura, Malibu, or Beverly Hills, my Los Angeles area accounting firm will work with you to ensure you’re more comfortable than ever using your financial statements as a guide for your company’s activities.
