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Financial Statements and Analysis

The owner of a small business performs analysis of financial statements in order to see where the firm is, where it has been, and where it should go. There are several types of financial analysis a owner or manager can use to keep a handle on the firm including financial ratio analysis. These tools are used to forecast the firm's financial needs in the future.
Financial Statement Analysis for Your Small Business Firm
This article presents an overview of financial statement analysis for the small business. It touches on the income statement, the balance sheet, and the statement of cash flows.
An Overview of Financial Ratio Analysis
Using financial ratios is a powerful tool of financial analysis for the small business firm. Financial ratio analysis is powerful if you compare your ratios to either industry or time-series data.
Tutorial on Beginning Debt Management Financial Ratio Analysis
Debt management, or financial leverage, ratios are some of the most important for a small business owner to calculate for financial ratio analysis for the small business. This tutorial will show how to calculate the debt to assets ratio, the debt to equity ratio, the times interest earned ratio, the fixed charge coverage ratio, and the long term debt to total capitalization ratio.
Tutorial - An Analysis of a Company's Liquidity Position Using Financial Ratios
This tutorial shows how to do a simple liquidity analysis using the current and quick ratios, along with net working capital, to analyze a company's current financial position with regard to its liquidity and solvency.
Operations - Analyzing Your Financial Position - Financial Management…
After you open a business and get the basics up and running, you have to start looking at the more complex details of financial management such as financial analysis and financial forecasting. Other issues are considered here such as business bankruptcy, business ethics, and a buyer's guide is located here for you.
How do you Determine Profit or Net Iincome?
Profit or net income is calculated using accrual accounting. Cash flow is determined by cash accounting.
Are a Firm's Cash Flow and Profit Different?
Cash flow and profit are not the same thing. Cash flow is the money the business owner has available. Profit or net income is determined by when sales are made.
Free Cash Flow is the Gold Standard of a Company's Financial Health
Free cash flow is the cash a company has available after meeting all its obligations including increases in fixed assets and paying dividends. It's a better method of determining a company's financial health than earnings per share.
Accounting Ratios for Financial Statement Analysis
This is a list of financial ratios that accountants typically use to analyze a business firm.
Small Business Accounting Products from the IRS
This is a link to an assortment of accounting products offered by the Internal Revenue Service that may be helpful to small businesses for analyzing their financial position.
Back to the Basics with Account Reconciliations
This is a good article on getting back to the basics of business accounting with basic account reconciliations.
Time for a Checkup
This is a good article giving you some helpful hints on how to check up on your small business's financial health.
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