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. Click here to find more information on our website. 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. Links Lindsey & Waldo, LLC If you have not checked out all of our free resources available to you. Click here for our site. Here are some of our featured free resources. How Can I Organize My Financials? Should I Have A Business Plan? What Steps Should I Take Towards Branding? How Can Marketing Bring In More Clients? The Start-Up Checklist What Type Of Corporation Should I Be? Things To Consider When Scaling A Business