Operate and Analyze Your Business
From Rosemary Peavler, former About.com Guide
- Understanding and Preparing the Financial Statements for your Firm
- Financial Ratio Analysis
- Profitability Ratio Analysis, Calculation and Management
- Market Value Ratios
Understanding and Preparing the Financial Statements for your Firm
Once you get your business set up and get a general idea of your budget, you have to learn to understand and prepare your financial statements. You will need to prepare, or have your accountant prepare, an income statement, statement of cash flows, and balance sheet. Even if your accountant actually prepares the statements, you'll do most of the work because you do the record keeping.
- Overview of Financial Statement Analysis
- The Income Statement
- Statement of Retained Earnings
- The Balance Sheet
- The Relationship Between the Income Statement and Balance Sheet
- Use Comparative Balance Sheets to Prepare the Statement of Cash Flows
- Prepare the Statement of Cash Flows
Financial Ratio Analysis
Financial ratio analysis is one technique of financial analysis that a small business owner can use to analyze the operations of the firm on a trend and industry basis. It's a valuable technique for small business owners to use because the ratios are relatively easy to calculate and interpret as long as the business owner has comparative data.
- An Overview of Financial Ratio Analysis
- What is Financial Ratio Analysis and How is it Used?
- Use Trend and Industry Analysis to Compare your Company's Financial Ratios
- The Important Categories of Financial Ratios and the Meaning of Each
- Tutorial: An Analysis of a Company's Liquidity Position Using Financial Ratios
- Tutorial: Beginning Debt Management Ratio Analysis
- Managing Asset Turnover or Efficiency Ratios
- Profitability Ratios
Profitability Ratio Analysis, Calculation and Management
Learn how to calculate, analysis, and manage your profitability from a number of different perspectives with these articles about profitability ratios and their calculation, analysis, and management.
Market Value Ratios
Market value ratios evaluate the economic status of your company in the wider marketplace. Market value ratios give management an idea of what the firm's investors think of the firm's performance and future prospects.
Cash Flow Analysis
Cash flow analysis is another type of financial analysis, in addition to financial ratio analysis, that is crucial to your business firm. You may turn a profit, but if you don't have cash coming into and out of your business, your business will fail. The material, worksheets, examples of analysis, and techniques in this section will keep you on track with your cash flow.
- How to do a Cash Flow Analysis
- Cash Budgeting vs Statement of Cash Flows - What is the Difference?
- 6 Tips for Maintaining a Healthy Cash Flow
- How to Increase Your Cash Flow
- Calculate Your Company's Free Cash Flow
- Three Ways to Calculate Free Cash Flow
- Calculate Cash Flow Ratios to Determine Liquidity and Solvency
- Introduction to Preparing the Statement of Cash Flows
- A Line-by-Line Description of the Preparation of a Statement of Cash Flows
Forecasting Your Future Financial Needs
Forecasting the future financial needs of your small business is a difficult task. There are so many variables to take into account. You have to consider the broad economy as well as the specific industry your company is in. You have to use estimated data based on past data. Forecasting touches every aspect of your firm from managing your cash to long-term decisions such as buying plant and equipment. Here is some information to help you.
- Financial Forecasting for Your Small Business
- Tweak Your Business Plan in a Recession
- How to Adjust Your Sales Forecast When Economic Times Change
Employee Benefits
Small business owners have to deal with the issues of employee benefits for themselves and their employees. Examples are health insurance, which is undergoing a rather complex reform, and retirement benefits. In a very small business, a business owner has to allow sufficient time to decide on what benefits will be offered and study the options. In a larger small business, often there is an entire employee benefits department as the issues are complex and time-consuming and quite important.
- High Deductible Health Plans as an Option for Small Business Owners
- Health Savings Accounts Compliment High Deductible Health Plans
- Mini-Medical Plans - What They Mean for Small Business
- 10 Questions and Answers About how Health Care Reform will Affect your Business
Business Bankruptcy
If you have to take bankruptcy, or think you do, here is some information to help you. Learn about the different types of bankruptcy. See how to choose an attorney. Maybe you could use a financial workout instead of bankruptcy. Read on!