What Does Business Analysis Help You With?
What Does Business Analysis Help You With?
Business Analysis Help Business Owners To Find Errors.
Finding errors in your accounting records are beneficial to your business. While finding the errors you may discover such unfortunate events as:
theft, embezzlement, or business deficiencies.
Also, as a business owner you know it pretty well, that audit happens and it is better if you are prepared. You are the responsible party, and you should pay attention to your management tactics and to your accounting records.
Business analysis provides you with ratios for your business, compared with industry average ratios to identify potential problems or risks. Also, the ratios provide quick analysis of inconsistencies within your business. Inconsistencies could be due to intentional or unintentional accounting misrepresentations.?
RATIOS
| ? | Jul 17 | Aug 17 | Sep 17 | Oct 17 | Nov 17 | ? |
|---|---|---|---|---|---|---|
| Current Ratio | 0.84 | 0.92 | 1.06 | 4.43 | 4.13 | ? |
| Quick Ratio | 0.09 | 0.97 | 0.14 | 0.09 | 1.90 | X |
| Debt/Equity | -6.37 | -45 | 16.80 | 0.29 | 0.30 | X |
| Gross Margin | 100% | 31.09% | 29.51% | 120% | 41.07% | X |
| Net Margin | -90732.49% | 3.05% | 1.22% | 29.56% | 30.98% | X |
| ROA | -47.28% | 1.94% | 15.68% | 92.95% | 24.71% | X |
| ROI | 393.98% | -21.42% | 459.22% | 120.04% | 22.05% | ? |
?x? mark shows that there is a problem somewhere is balance sheet accounts, because the changes don?t line up with consistency nor they match industry averages.
Business analysis also shows declining trends to also identify potential problems.
| Aug 17 | ? | ? |
|---|---|---|
| ? | Cash Declining | yes |
| ? | Receivables Aging | ? |
| ? | Inventory Declining | yes |
| ? | Expenses vs Revenue | yes |
| ? | Misfinancing | ? |
| Sep 17 | ? | ? |
|---|---|---|
| ? | Cash Declining | yes |
| ? | Receivables Aging | ? |
| ? | Inventory Declining | yes |
| ? | Expenses vs Revenue | yes |
| ? | Misfinancing | ? |
| Oct 17 | ? | ? |
|---|---|---|
| ? | Cash Declining | yes |
| ? | Receivables Aging | ? |
| ? | Inventory Declining | yes |
| ? | Expenses vs Revenue | yes |
| ? | Misfinancing | ? |
| Nov 17 | ? | ? |
|---|---|---|
| ? | Cash Declining | yes |
| ? | Receivables Aging | ? |
| ? | Inventory Declining | yes |
| ? | Expenses vs Revenue | yes |
| ? | Misfinancing | ? |
Business analysis identifies key areas to look at to see if your accountant missed anything, such as additional inventory sold or extra expenses.
Tax Bookkeeping Payroll, limited liability company?provides such business analysis to clients (through a third app party) at no additional cost.
