Financial management and understanding numbers is a daunting topic for many entrepreneurs. However, this is a vital skill when speaking with investors and bankers that will help your business grow and/or survive.
This video will give an outline of what numbers are important and some basic ratios to test on your business.
Some concepts that are very important are;
1. Reviewing your past performance and changing trends can spot problems early.
2. If you don’t have past performance you can also track against industry averages. This can be done based on the industry that you are in and the size of your business.
3. Financial ratios help you determine if there are problems in specific areas in your business.
– the quick ratio and acid test
– accounts payable and receivables turnover
– debt-equity ratios and interest payable
4. Creating a 1-page business performance dashboard helps you see all of the financial metrics in one spot.
Contact Your Experts
Fabyelle Chevalier, CPA, CA
Manager – Financial Advisory Services
BDO Canada LLP
Gregg Miyasaki, CGA
Mid-Market Commercial Account Manager
BMO Bank of Montreal
Like the PowerPoint? Analyzing Your Numbers
If you are looking for places to find industry standards;
– Stats Canada: http://www.statcan.gc.ca/start-debut-eng.html
– Your financial institution
– Your accountant