Financial Statements: Numbers every Business Owner should know
Knowing what numbers to look at i your financial statements could save you thousands of dollars, that’s why we’ll spend some time today deliberating numbers.
We are joined by Richard Lindsey, CPA, of Lindsey & Waldo, LLC. Richard worked in a family business for 15 years before getting a Master of Accounting degree. He’s been a CPA for about 26 years, and his focus is primarily on individuals, small businesses, and their owners – helping them with their financial statements, payroll, tax returns, and tax planning. Lindsey & Waldo, LLC is located in Mobile, Alabama.
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Financial Statements – Key Points
- Where should you focus your attention?
- A business owner’s industry will influence the figures that are essential.
- Not all critical numbers appear in financial statements.
- Some practical examples of figures that are useful in analyzing a restaurant business.
- Do you know the significant numbers associated with your expenses?
- Keep a hawk-eye on variable costs.
- Depending on the industry, some numbers that management should be looking at may seem insignificant but could add up to a whole lot.
- Management accounts tend to be more voluminous than the set of financial statements you would share with your bank.
- Business owners could save money by paying themselves less in wages!
- Profit distribution vs. salary income for S Corps.
- The best CPA to work with is one who is proactive with suggestions or solutions for your business.
- Track everything and document everything.
Soak this information in and enjoy.
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