No matter what type of business you have, keeping the financial practices in order are an extremely important factor in the success of an operation. While the bottom line procedural results are a direct correlation to the amount of money being received being higher than the amount of money spent, there are a number of different factors which contribute to the causes of both. Ensuring that your business practices are in order, from the finances to the operation and delivery of goods or services, can create a foundation for a successful future.
After start-up, a shocking number of entrepreneurs will not make it on the road to secure a successful business. Studies show an astonishing eight out of 10 businesses fail within the first two years of existence, indicating that owners are facing an uphill battle no matter their circumstances. Whether you have an excellent idea, are creating a better component to an already existing product, or created an entirely new concept for something, the odds are already stacked against you.
Understanding the finances, in particular two of the key components that provide an overview of your current business practices, is an extremely important step. This is also the reason many individuals or groups of owners choose to outsource their bookkeeping and financial practices. By having a third-party that is not emotionally tied to the product or even related to the business partners or practices, an unobstructed and direct view of the situation at hand may be provided.
One of the most integral parts to a financial analysis of a company involves the balance sheet. A balance sheet provides a snapshot of the companyâ€™s current situation regarding liabilities, assets and shareholder equity. These components are essentially a look at the overall health of a business and can typically be constructed for any given time period.
Whether you need a current fiscal year-to-date analysis, a deeper look at a particular quarter, perhaps a comparison of quarters, or even an entire year in one report, the information provided here is both extremely important and relevant.
Profit and Loss
Another important report regarding the overall health of a company is the profit and loss statement. Often referred to as a â€œP and Lâ€ for short or an â€œIncome Statementâ€, these reports refer to the bottom line of a company and the ability to ensure they are making more money than the organization is spending.
Analyzing the revenue generated in a side-by-side comparison to the expenses incurred along with the complete results, these financial reports are also important. They too can typically be adjusted to show the desired results from a given time period in order for comparison analysis and other types of results to be computed.
The tax and financial experts
at Bloch Rothman and Associates are ready and willing to assist if you should need help assessing your current financial situation of your business, paying all associated taxes, or any other personal or corporate wealth management issues. In addition to providing a quality tax service, including navigating the intricacies of an audit, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, donâ€™t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!