Before you start, what information do you need for the financial analysis of your online business?
Below, we present 3 factors that you will need to make your company operate in the best way and manage to increase your business sales!
1. Company or business overview
Prepare a document that compiles the following data:
What do you do and what is your economic activity?
What were the variations or fluctuations during peak seasons and crisis periods?
Who are your main competitors?
What is the company's market positioning ?
Who are its owners?
What were the strategies to consolidate the business?
ead more: What is a financial budget and its role in your company?
2. Financial statement
It consists of:
Statement of financial position.
Income statement.
Cash flow .
Statement of changes in equity.
Consolidation of assets.
Balance.
3. Management annexes
It has to do with:
Budget executions.
Management comparisons: historical benin phone data projections vs. actual executions.
Estimated projections for the next fiscal years.
Step by step to perform financial analysis in a company
At this point in the article, we will tell you how to do a financial analysis based on 3 basic concepts:
Profitability
At this point, income, costs, expenses and assets, among other elements, are evaluated. The purpose is to verify the quality, evolution and projection of the company, as well as its composition; without leaving aside its value .
Liquidity
It has to do with the company's ability to meet its short-term obligations and debts. The variables observed in this phase are: debt, maturity period, turnover, current assets, etc.
Solvency
This stage assesses the company's ability to meet its long-term objectives , such as investment and debt repayment. In addition, sources of financing, equity and long-term liabilities are also analyzed.
Continue with the financial analysis
To understand whether a business is sustainable and yielding good results, it is necessary to closely monitor the budget invested at each stage.
There are no secret formulas for success, but rather it is about testing and measuring the results, analyzing what works and what doesn't to see where adjustments need to be made and achieve an increasingly healthy business.