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Financial
Projections & Statements
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The
financial projections and statements of your business are the very
best indication of your proposal or your company's performance
and condition. All aspects of a business can be enumerated.
When organized and logically grouped, the numbers of your business
indicate profitability, cash flow, equity positions, and a whole
lot more.
TAKE YOUR
NUMBERS SERIOUSLY ! ! |
Each
business should have a host of financial statements that are routinely
updated to reflect on-going operations. The basic financial statements
of a business include:
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Balance
Sheet - Illustrates the current and fixed assets, the current
and long-term liabilities, and the equity positions of the owners
of the company.
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Income
Statement - Illustrates the revenue, direct costs, overhead, and
profit (loss) of the company for specified period of time. Sometimes
called Profit & Loss Statement.
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Cash
Flow Projections - Illustrates the company's projected revenue,
collections, expenses, and cash position incrementally for a specified
period of time. Generally, the further into the future, the less accurate.
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Breakeven
Analysis - Illustrates the sales volume needed to cover all direct
costs and overhead and the point at which profitable operations begin.
May be for a fiscal period, or for a specific project or job.
- Profit
Plan - Illustrates the projected revenue, direct costs, overhead,
and profit of the company for specified period of time. Sometimes
called a budget.
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Without
these financial projections and statements, your business cannot:
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maximize
leverage of debt and equity, |
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understand
the growth of the company, |
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analyze
performance for corrective action, |
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understand
the individual profit centers and their contribution to profit margin, |
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assess
the effectiveness and necessity of each cost and expense, |
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plan
for capital investments or income distributions, |
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understand
when a competitive advantage exists, |
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accurately
price it's product/service so that every sale covers all associated
costs and a portion of overhead |
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analyze
and correct performance that varies from the profit plan of the
company |
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convince
a potential investor or lender that the business is profitable.
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Keeping
accurate records will insure that these statements are always available.
Unfortunately, most businesses often utilize their accountants or their
bookkeeper to prepare these statements. The normal assumption is
that their working use of financial documents qualifies them to prepare
these statements. However, their use of those statements is often
confused with their ability to prepare and analyze these statements from
a business management perspective. Accountants tabulate and categorize
the numbers according to tax considerations. Bookkeepers record
transactions and generate reports. Both deal with historical performance.
Whereas, a bona fide business management consultant will have the expertise
to structure and analyze these statements so that information crucial
to management decision making is continuously available.
Every
management consultant of CEO Services Group
can prepare your company's financial statements and help you to understand
your business in ways that you never knew. CEO
Services Group will prepare these financial statements and
provide them to you on computer disk. Complete the Online Questionnaire
below.
TAKE
YOUR NUMBERS SERIOUSLY ! !
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