Hi 

 

Have you ever review your business numbers? Do you know how important finance is for a business?

 

Research compiled in Robert Half’s CEO Tracker found that among Australia’s top 200 listed companies, almost one in two (43%) CEOs have a finance background, it's highlighting the value of financial acumen to business leadership.

 

There are 3 Key Financial reports to check on when you're reviewing your business financials.

Each report will bring you different things about your business. Put it together, they’ll provide you with nearly everything you’ll want to know about your business performance!

 

Here are 3-steps to review your Income Statement,

1. Check your bottom line - The number at the bottom line gives you an idea of how your business performing. Keep in mind that a net loss once in a while does not necessarily imply disaster.
2. Dive into the income/expenses categories - Ask yourself the following questions,
   1. Do they make sense for the business? 
   2. Are they sustainable? 
   3. Has it grown gradually over each period? Or is revenue this period higher than usual?
   4. Is every revenue stream sustainable? Or are there unique line items this period?
3. Compare your numbers - Comparing results to the last month, quarter, and/or year. If any significant changes in the numbers, look ahead to what are the adjustments should be made.