What is Business Financial Report Intelligence?
Financial reports are the key to success in any business. Why? Business financial reports provide the inside tract regarding the fiscal well-being of the company. Without a good working knowledge of these important reports, your business financial report intelligence, a business owner cannot determine whether the company is a success or heading toward an unrecoverable failure.
Surprisingly, many small business owners know little to nothing about their most important paper assets.
The level of a company’s success depends upon how good your financial report intelligence is applied to the business.
The Big 3 Business Financial Report Statements
Three main business financial reports form the basis for any company. Monitoring these reports, understanding the numbers they depict and determining important business trends will keep a business owner informed of the most important aspects of its health. They give insight into what actions are needed, including when and how to head off problems leading to potential business disruptions.
The Income Statement
This also called the Profit & Loss Statement. It shows a company’s profitability. Subtracting a company’s expenses from its income gives a snapshot of a business’ financial position over a period of time.
The Balance Sheet
The basic accounting equation paramount to understanding a business’ operations is simple: Assets equals Liabilities plus business Capital (A = L + C). The balance sheet defines the three main elements of the equation. Assets are anything the business owns or is owed. Liabilities are what the business owes. Capital (also called Owner’s Equity) is what’s left over. In other words, it’ the owner’s share of the business.
The Cash Flow Statement
The statement of cash flows measures the flow of monies in and out of the business. It also converts finances from accrual basis to cash basis. It tells you where your money is coming from and where it’s going.
Managing The Business Using Financials
Understanding these financial statements are vital to decision-making. By determining cash flows and showing how well the business is collecting receivable accounts and paying its own obligations, you see how company’s overall health. The result is a good visualization of any cash flow problems that could be disruptive to your company. It is vital that small business owners develop good business financial report intelligence by learning to read and understand these basic financial reports and how to make decisions based on them. Lack of business financial report intelligence can destroy any business.
Why Dragon Financial Services Are So Important For Your Business
One of the largest complaints of small business owners is having to “do the math” for their business. Unfortunately math, financials and some owners just don’t “get along.” Dragon Financial, Inc. was founded to assist the hard working owners of businesses of all sizes with their understanding, interpretation and proficiency with the types of actions needed to keep a business in good, healthy working order. Utilizing Dragon Financial Virtual Assistant the business owner has 24/7, real time access to all of their business financial reports and business records using interactive technologies. To increase your financial report intelligence, contact Dragon Financial today and see how they can help you understand the many areas that will increase your business’ successes. Get in touch with us today to see how we can help you!