The financial part of a business plan is the most important one. While various financial statements and strategies keep your business moving forward, the future of your business may fall apart without a detailed financial analysis . With an analysis, you can plan well ahead on business investments, lending money or taking a loan for your company expansion and growth. It is true that a well-planned business plan is always based on a financial analysis.
What Should Your Financial Analysis Include?
Your company’s financial analysis should include everything from key business statements, income details, cash flow statement and balance sheets. These are the key financial statements that represent the overall financial health of your business. Here is a detailed overview.
Why is Ratio Analysis Important?
It is important to for the financial advisor to first analyze the ratio of all key components. The ratio between the key numbers of the financial analysis of your business demonstrates a clear picture of the company’s past results, future financial projections and goals. Indeed, a ratio analysis will help you to identify the strengths and weaknesses of your business.
A Financial Analysis Determines Business Health and Stability
A financial analysis also determines whether your business is stable. Based on your company’s past and present financial health, the financial advisor can determine how well your business will do in the future. At this point, you and your advisor can work closely to come up with a better financial plan and strategy for your business’s future.
Financial Analysis for Taxation and Liquidity
Based on your company’s financial statements and analysis report, government agencies will determine if your company’s fiscal decisions and accounting procedures are correct. These agencies also take this into consideration while calculating the tax.
Market conditions can be unstable any time so it is important to know your business’ liquidity ratio. The balanced sheet in the financial analysis determines the company’s current assets and working capital
Financial Analysis for Future Business Management
A financial analysis is very important for future business management. Upon receiving the financial statements, companies will be able to plan their strategic decision making, financial reporting obligation and create a method to financially manage their business better. A professional team of financial advisors and analysts can help you prepare financial statements, conduct a quantitative analysis and make better business decisions for the future.
Complete your financial analysis with Focus LLP.
Focus LLP is a Chartered Professional Accounting Firm located in Calgary, Alberta. Our aim is to provide guidance and services which are uniquely tailored for your financial and tax requirements.
For any inquiries you can contact us at info@focusllp.ca
Phone: (403) 509-3290 Website: www.minorandassociates.ca