Why good financial statements are necessary

Good financial statements can help you understand where your business has been, where it is currently and how to get where you want to go.

Having a complete set of financial statements will help you answer or think through such questions as;

  • How much income are you generating now and how much income can you expect in the future?
  • How much cash is tied up in accounts receivable (and not available to you yet)?
  • How much do you owe your suppliers?
  • What are your expenses, including payroll, payroll  on-costs, cost of goods sold, motor vehicle costs, rent and interest?
  • How much cash do you have on hand? How much cash is tied up in inventory? What is your actual working capital budget?
  • How frequently do you turn over your inventory?
  • Which of your product lines, departments, services or clients are profitable, which are breaking even, and which are financial drains?
  • What is your gross profit? What is your net profit?
  • How does all of the financial data listed above compare with last year-or last quarter?
  • How does it compare with the projections in your business plan?
  • How does all of the financial data compare with that of your competitors? With that of the industry?

If you need help putting together more robust financial statements or performing financial analysis that allows you to answer these or any other questions you might have, please give Kerry a call on 6023 1700.

Got a question? Get in touch

If you've got financial or business questions, or you just want to run something by us, we'd be delighted to really talk to you – in person, over the phone - call us on 02 6023 1700 - or you can use the form below and we'll get back to you.

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What clients are saying about partnering with Mason Lloyd for their accounting

"As a company in these changing times, our business life regarding taxation management, company running and forward planning has been made easier as a result of the knowledge and integrity we have found with Kerry at Mason Lloyd Accountants."

Peter & Kathy Larkin

Larkin Plumbing Pty Ltd & Pioneer Water Tanks

"I look forward to our meetings with Kerry – we have real discussions about my business and the ways to continually improve my bottom line. No feeling of dread before going to the accountant with these guys! They genuinely understand where we're at, and look at things from a whole life perspective, not just as a business defined by a set of figures."

Jacqui Nelson

Director, Albury Travel & Cruise

"Kerry and the team at Mason Lloyd have been looking after our business and tax affairs for close to 20 years. The Mason Lloyd Team have delivered timely, accurate and outstanding service. Nothing is ever too hard. Kerry and the team are just not number crunchers, they truly have out best interests at heart."

Graeme & Vicki Roy

GD & VK Roy Electrical Contractors

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