Knowing your current financial position and correctly interpreting stress signals within financial statements are essential first steps toward proactive business management and realistic goal setting.
This analysis can be very rewarding as it usually uncovers a combination of inefficiencies from which small changes can begin. Over time, these changes can significantly improve business performance.
In today’s fast-paced e-commerce environment, changes that affect business health are constant. Today more than ever, proper budget preparation and variance analysis can be the differentiating factor between proactive success or a constant state of reactive challenge. Properly prepared budgets serve several key functions; they are financial planning tools, cost control tools, communication tools, and motivational tools.
Do your financial reports suffer from a non-correlating relationship of sales to operating income? These inventory and production related issues can make management decisions extremely difficult.
Do you have significant fixed costs and volume variability in your product mix? Do setup requirements vary among products? If so, exploring alternative cost allocation methods may provide added insight to your management decisions and overall profitability.
This analysis can provide accurate information from which sound management decisions can be made regarding acceptance /rejection of special orders, product line keep/drop questions, equipment keep/replace decisions, and more.
Correctly understanding revenue and cost structure in your business is critical for accurate forecasting and all strategic management decisions. This analysis is a process through which projection scenarios relating to changes in capital costs, operating expenses, production volume, and more can continue to be managed to meet targeted cash flow and profit margins.
Managing growth and change are high-stakes decisions. Structure, financing gaps, and return must be well analyzed prior to financial commitment. Consider capital budget modeling for your next investment idea…before you speak with a lender. We’re here to help you navigate these waters – from added value and rate of return analysis, to cash flow and working capital needs, to leverage and debt service capabilities, and more…
A comparative industry analysis is very useful to determine where your business is excelling and where inefficiencies exist. This analysis is a service we provide using NAICS industry data – the same as commercial banks.
It’s never too early! Knowing the correct questions to consider as you begin the journey of exit planning can change the way you manage your business. We understand these key questions and can also introduce you to varying methods of business valuation.