Business intelligence comes down to understanding your key performance indicators. Financial ratios are tools to understand relationships within your financial statements. They help avoid problems involved in comparing your unique company needs, goals, and liabilities. Ratios are computed differently to measure a specific concern. When you are thrown into many numbers on your report, ratios can help measure a specific area and identify important trends.
Examples of financial statement ratios include:
Accounting is generally known for keeping the books and generating financial statements. This is where the value of accountants, in most people’s eyes, stops. At Full Cycle CFO we offer businesses the next level in accounting expertise: growing your business intelligence. As your outsourced CFO, we add value to those financial statements and help your business interpret them and really know the financial health of the company. Being able to read and interpret what your finances are saying is key to diagnosing potential issues and to help track progress in your business.
Do you know how to read your financial statements and know your key performance indicators? By having us here to help you better understand your financial statements, you can gain great perspective on variety of things. We can help you interpret specific items like profitability ratios to track your business growth but we also like to monitor these performance indicators over time. This gives the big picture of really understanding your business’ efficacy. Comprehensively evaluating financial statements on a regular basis is key in developing and tracking your business’ strategy and Full Cycle CFO is here to help you every step of the way.