Very few clients have been trained to read a set of financial accounts and to understand all of the key data they contain. Some ratios can be very misleading out of context, and it is critical for businesses to know what is really going on in order to make the right decisions.
We will spend time with owners or senior management, to review their financial information and to explore the important data they contain. We look at all the obvious headline numbers such as turnover, profit and balance sheet values, but also at key ratios such as profit margins and liquidity ratios.
As well as looking at numbers within an individual set of accounts, we will also explore the trends over a few years. A 30% gross profit margin may seem ok in isolation, but if that is the final year of a trend that showed 33%, 32%, and 31%, then it is something to be addressed.
Whilst exploring the issues for the business in question, our team also bring a wealth of experience of other businesses to try and make suitable comparisons on others in the same industry or of a similar size or stage of development.
Making sense of the financials is key to driving any business. We will help you to make sense of your numbers and understand the key issues in your accounts.