Accurate financial information is critical to the successful operation of any business venture. Your analysis of such data should relate not only to your enterprise, but also to that of your customers and vendors.
The key areas to evaluate include:
• Revenues and expenses, and the reasoning behind any fluctuations in both.
• Customer and vendor performance (payment activity, timeliness of deliveries, etc.).
• Any factors impacting cash flow, borrowing capacity and overall financial performance.
Remember that financial information must be obtained, analyzed and applied on a regular basis. Such data and analysis are essential to the successful operation of your business.
– Robert E. Dauer, Jr., Meyer, Unkovic & Scott, red@muslaw.com