Are you tired of financial statements with little to no value?
As I meet with one business owner after another, I am astonished with what they have to work with to run their businesses. The ones that are doing well have a simple balance sheet and income statement printed from their accounting system for a single month. Many business owners aren’t even fortunate enough to have that!
So what is wrong with a balance sheet and income statement for a single month? The answer is lack of perspective. How do you know if the numbers you are viewing are good, bad or somewhere in between? Without perspective, you really have no idea!
Gilbert Keith Chesterton said: “It isn’t that they can’t see the solution. It is that they can’t see the problem.”
How does this relate to financial statements?
When reviewing financial statements you should be able to answer certain questions, such as: How did the company perform compared to the last few months? How did the company perform compared to last year, for the month and year-to-date? How did the company perform compared to its strategy, as outlined in the annual budget or to years past?
A company may have a loss for the period and be doing very well when compared to budget and compared to years past. Additionally, the company may be profitable for the period and be doing poorly when you consider where it could or should be.
If you don’t have financial information that properly identifies the problems within the company, how can you possibly be in a position to identify or offer a solution? If your company’s financial statements aren’t providing you with the financial information you need to effectively run your business, consider contacting Advanced CFO Solutions for accounting and financial solutions with perspective and value.
Jerry Vance, Partner
Advanced CFO Solutions