Understanding Your Company’s Financial Reports

Business owners tend to develop strong relationships with their accountants. usually at least once a quarter you sit down to figure out where your company stands and how much it owes in taxes. You might also meet a couple times a year to plan when you will make certain investments in your business or how you will structure wages so that you get the greatest tax benefit.

For many business owners, the relationship ends there. They leave with a stack of financial statements and reports, and rarely look past the page where it says “balance due” – but it doesn’t have to be that way. As a business owner, you are responsible for your company’s profitability and you, and only you, can make the choice to use the information your accountant provides.

Understanding the numbers your accountant produces can go a long way to helping you be more successful. You don’t need an MBA or a degree in accounting to understand what the numbers mean and how they matter for your business.

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