Financial management deals with the financial decisions that have to be made in order for the business to survive and ultimately create wealth for the owner of the business.
Kevin Minkoff, CPA will provide the tools and training business owners and financial managers need for successful financial management. I give owners and managers the confidence to know that their accounting system will be improved and streamlined to such an extent that they will reduce costs with efficient information processes and generate revenue with faster, more accurate, financial reporting. This gives owners and managers the ability to be more responsive to economic fluctuations, reducing income taxes, increasing profits and improving the company’s cash-flow.
Financial statement analysis is used to find out what is right or wrong with a company’s financial operations and why. Financial statements become so much more informative when the user analyzes the relationships of particular accounts or groups of accounts in those statements. The information is further enhanced if these analyses are compared over a series of years and/or to benchmark norms developed from financial statements of a representative sample of several companies in the same industry.
Steps in Financial Analysis
- Identify the economic characteristics of the particular industry
- Identify the strategies of a particular firm to gain a competitive advantage
- Understand the financial statements of the particular firm and cleanse them of nonrecurring and unusual items
- Assess the profitability and risk using information in the financial statements
- Analyze status
- Analyze performance
- Find trends
- Value the particular company
- Compare to others
- Compare to goals, objectives, and mission statement
A properly developed and thorough business plan enables the business owner to:
- make better informed decisions and see how those decisions impact cash-flow and profitability
- determine priorities and understand interdependencies withing the organization
- be more confident in managing and delegating to employees
Information System Streamlining & Integration
Every business is comprised of a variety of operating systems. We accountants regularly refer to them as the system of internal controls. “Information System” describes the process of transmitting information and data within these operating systems to its intended recipient. Generally, the most expeditious way of transmitting information and data is by computer. Therefore, an Information System is comprised of two basic elements:
- a computer system
- the underlying business operating system
Integrated Operating System
Exit Strategy & Retirement Planning
Business owners at every stage of the life cycle of their business needs to give some consideration to what will happen at the point when the owner’s working years are over. A business owner’s net worth is typically a mixture of the value of the business, the value of personal assets and investments, retirement savings accounts and social security benefits. An exit strategy will:
- protect you financially through executive compensation and pension distributions
- ensure the continued success of the business through an smooth and effective leadership transition
- increase the value of the business by maximizing your business’ financial heath and appeal to potential buyers
Retirement planning involves an analysis of the various choices you can make today to help provide for your financial future. To make appropriate choices, you need to estimate, as well as you can, your future economic circumstances. You will also need to establish your post-retirement goals. When you have determined how much of an income stream you will likely require in the future, you will be in a position to make wise choices now about income, saving, investments, and business retirement plans.