Why do you need Financial Analysis, Planning, and Tracking in your business?
☑️ Every business, no matter its size, deserves
1) a straight-forward assessment of its financials,
2) a simplified plan to drive improvement, and
3) a scorecard to track progress.
- A variety of stakeholders need this including owners and managers, as well as possibly investors and bankers. Each may need different information, but generally they all have a need for clear, informative financial data. - Owners and managers will want to understand how changes in revenue, costs, profits, and cash flows, as well as pricing, labor, systems, and investments can affect financial performance. - Investors and bankers will want to understand how the company expects to utilize its funding to strengthen its financial position and pay them back.
✅ The “One-Year Plan” is a good place to start. → A simple financial baseline that all businesses should have, which shows the past year’s results and the upcoming year’s projections. → It’s a quarterly view showing side-by-side 4 quarters of actual results and 4 quarters of estimates for the upcoming year.→ It can be a roadmap for the coming year - setting general targets and providing early warnings to challenges that could lie ahead.
☑️ Establishing the “One-Year Plan” will give you a foundation for the coming year and provide you more confidence to achieve your goals.