Financial Analysis

Financial analysis can tell you a lot about how your business is doing. Without this analysis, you may end up staring at a bunch of numbers on budgets, cash flow projections and profit and loss statements. You should set aside at least a a few hours every month to do financial analysis. Analysis includes cash flow analysis and budget deviation analysis mentioned above. Analysis also includes balance sheet analysis and income statement analysis. There are some techniques and tools to help in financial analysis, for example, profit analysis, break-even analysis and ratios analysis that can substantially help to simplify and streamline financial analysis. How you carry out the analysis depends on the nature and needs of you and your business. The following links will help you get a sense for the "territory" of financial analysis
There are a variety of ways to help determine profitability of your business. What Kind of Profit Can I Expect from a New Business?Are You Making a Profit?Cost/Volume/Profit AnalysisMix of Profit - Sufficiency of ProfitTrend of ProfitCalculating Profitability Ratios