Financial Statements: How They Help Your Company Succeed

Posted on by LBS Tax

Of course there is the obvious reason why keeping up-to-date, accurate financial statements helps a business do well: Knowing where the business stands means knowing how to act on its behalf. Designating a person in-house or using a bookkeeping service in Chandler is a business imperative

Better Decision Making

Knowing where a company stands allows management to make smart, quick decisions. When an influx of business comes in, a company can decide on the best hiring option. Knowing what funds are available for purchasing and adding venders is nearly a real-time requirement in today’s fast changing market. Having financial records which are regularly updated will allow managers and financial planners to do their job efficiently and more to the companies benefit.

If You Sell

Just having regular, accurate statements available when a potential buyer reviews a business’s records will make a good impression from the start. A lack of financial statements or statements that are inconsistently kept give the appearance that the business is in a shabby state. Buyers will have to consider the fact that they will not have a complete picture of the company they are looking into purchasing. On the other hand, having profit and loss statements for each quarter allows a company to look appealing. Showing increasing profits as well as strong organization will instill a sense of security for the buyer. When it comes to verifying records, financial documentation already exist so an independent accounting consultant will take much less time reviewing and approving them.

Looking for Trends

Things change fast in the world of e-commerce. Everything from where you rank on a Google search to how many likes you have on social media significantly impacts business. Financial statements will show a company where trends lie. From there those financial trends can be compared to what efforts, ranking, or advertising has been done. It becomes easy to see what is working and what is not. Likewise, you can see what products or services are moving at what times, again improving better business decisions.

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