Where can my business save? How can I increase profits? Where are my profits going? Can I make decisions with the financial information that I currently have? Is there a way I can review my financial performance regularly with a qualified CPA & business advisor? Can I afford this high level of service? Business owner? FINANCIAL REPORTING FOR DECISION MAKING THAT SAVES YOU $$$ . For as little as $7per day, you can have the information and tools you need to save thousands. We prepare monthly or quar- terly financial statements for clients so they know at any point during the year where their profit margins are or where expenses can be reined in. We understand that most businesses maintain an electronic set of records that contain their business activity, but what we also understand is that most of it doesn’t make sense, is hard to understand, isn’t up-to-date or accurate, is in constant need of some “tweaking”, and is simply an electronic shoe box. We prepare your financial statements from bank records in order to get the most accu- rate accounting. All we need is a bank statement—and even then you don’t have to do anything, your bank can send it directly to us if you would like. WWW.HALLOWSFINANCIAL.COM PO Box 54 / Salina UT, 84654 / Tel 877-393-3351 Talking to yourself doesn’t mean you’re crazy... $7 is all it takes...Last Novem- ber we visited with one of our clients who we prepare quar- terly financial statements for and after reviewing their finan- cials made a decision with them that saved them over $100,000 in taxes. A list of other clients saved tens of thousands. ...it just means you want answers!
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Where can my business save? How can I increase profits? Where are my profits going? Can I make decisions with the financial
information that I currently have? Is there a way I can review my financial
performance regularly with a qualified CPA & business advisor?
Can I afford this high level of service?
Business owner?
F I N A N C I A L R E P O R T I N G F O R D E C I S I O N M A K I N G T H A T S A V E S Y O U $ $ $ .
For as little as $7per day, you can have
the information and tools you need to save
thousands. We prepare monthly or quar-
terly financial statements for clients so they
know at any point during the year where
their profit margins are or where expenses
can be reined in. We understand that most
businesses maintain an electronic set of
records that contain their business activity,
but what we also understand is that most of
it doesn’t make sense, is hard to understand,
isn’t up-to-date or accurate, is in constant
need of some “tweaking”, and is simply an
electronic shoe box.
We prepare your financial statements from
bank records in order to get the most accu-
rate accounting. All we need is a bank
statement—and even then you don’t have to
do anything, your bank can send it directly
to us if you would like.
W W W . H A L L O W S F I N A N C I A L . C O M PO Box 54 / Salina UT, 84654 / Tel 877-393-3351
T a l k i n g t o y o u r s e l f d o e s n ’ t m e a n y o u ’ r e
c r a z y . . .
$7 is all it takes...Last Novem-ber we visited with one of our clients who we prepare quar-terly financial statements for and after reviewing their finan-cials made a decision with them that saved them over $100,000 in taxes. A list of other clients saved tens of thousands. . . . i t j u s t m e a n s y o u
w a n t a n s w e r s !
155 W Main 63 S Main, Suite 2 Salina, UT 84654 Ephraim, UT 84627 (435) 529-3351 (435) 283-2015
www.hallowsfinancial.com toll free: 877-393-3351
Are You Getting Information Like This From Your Accountant?
For Internal Management Use OnlyStatement is for presentation only and does not represent actual or accurate financial information
ASSETS
CURRENT ASSETSCash on Hand $ 43,435.26Cash in Checking 97,501.89Cash in Savings 1,125,572.85Operating Account 172,559.94Accounts Receivable 34,143.74Inventory 609,164.26
Total Current Assets 2,082,377.94
PROPERTY AND EQUIPMENTFixtures & Equipment 735,791.27Buildings 359,070.29
Less: Accumulated Depreciation (784,523.27)
Net Property and Equipment 310,338.29
TOTAL ASSETS $ 2,392,716.23
ABC CompanyBALANCE SHEET
As of December 31, 2009
For Internal Management Use OnlyStatement is for presentation only and does not represent actual or accurate financial information
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIESAccounts Payable $ 1,950.00Payroll Payable 8,815.50Fed & FICA W/H Payable 923.90FUTA Payable 287.49SUTA Payable 90.43Sales Tax Payable 5,123.91
Total Current Liabilities 17,191.23
LONG-TERM LIABILITIES
Total Liabilities 17,191.23
STOCKHOLDERS' EQUITYCapital Stock 1,135,544.56Beginning Retained Earnings 912,016.33Net Income (Loss) 327,964.11
Total Stockholders' Equity 2,375,525.00
TOTAL LIABILITIES ANDSTOCKHOLDERS' EQUITY $ 2,392,716.23
ABC CompanyINCOME STATEMENT
December 31, 2009
For Internal Management Use OnlyStatement is for presentation only and does not represent actual or accurate financial information
Total Other Income (Loss) 0.00 0.0 0.00 0.0 10,295.45 0.2 10,017.58 0.2
Net Income (Loss) $ 1,113,223.58 75.1 $ (12,136.44) (3.4) $ 327,964.11 6.7 $ (81,022.32) (1.9)
ABC CompanySTATEMENT OF CASH FLOWS
For the 1 Month and 12 Months Ended December 31, 2009
For Internal Management Use OnlyStatement is for presentation only and does not represent actual or accurate financial information
For the Month Ended For the Year Ended
December 31, 2009 December 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIESNet Income (Loss) $ 1,113,223.58 $ 327,964.11Adjustments to reconcile Net Income(Loss) to net Cash provided by(used in) operating activities:Depreciation and Amortization 6,816.76 104,326.53Losses (Gains) on sales ofFixed Assets 0.00 595,000.00Decrease (Increase) in Operating Assets:Accounts Receivable 1,629.48 (9,081.07)Inventory (378,822.61) (381,648.25)Increase (Decrease) inOperating Liabilities:Accounts Payable (15,000.00) (108,050.00)Accrued Liabilities (3,159.07) 2,236.69Total Adjustments (388,535.44) 202,783.90
Net Cash Provided By (Used in)Operating Activities 724,688.14 530,748.01
CASH FLOWS FROM INVESTING ACTIVITIESPurchase Of Fixed Assets 0.00 (3,699.63)Proceeds From Sale of Fixed Assets 0.00 0.00
Net Cash Provided By (Used In)Investing Activities 0.00 (3,699.63)
CASH FLOWS FROM FINANCING ACTIVITIESShareholder Capital Contributions 53,183.24 511,853.10
Net Cash Provided By (Used In)Financing Activities 53,183.24 511,853.10
NET INCREASE (DECREASE) IN CASHAND CASH EQUIVALENTS 777,871.38 1,038,901.48
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 661,198.56 400,168.46
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 1,439,069.94 $ 1,439,069.94
ABC CompanyINCOME STATEMENT
12 Month Comparison For 2009
For Internal Management Use Only
Statement is for presentation only and does not represent actual or accurate financial information
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD TotalSalesSale of Product 320,895 284,872 330,115 315,907 352,566 343,211 389,925 35,698 369,844 350,581 300,559 1,482,469 4,876,639Less Returns & Allowances 0 0 0 0 0 0 0 0 0 0 0 0 0
Report prepared for: ABC Company Industry: Sporting Goods Retail Revenue: $1M - $10M Periods: 3 months against the same 3 months from the previous year
What are the Key Performance Indicators for the business? This section of the report provides Key Performance Indicators (or KPIs) for the business being analyzed. A KPI can be either a financial or a non-financial metric, but it is typically a number or ratio that is easily obtained and tracked by the business as an early indicator of how well it is performing. The ratio calculations, graphs, and benchmarks displayed below are specific to the particular industry this business operates in. Tracking these KPIs over time as a trend and also as they relate to the industry comparison benchmark can help lead to more effective management of the business, although it is important to be aware that a KPI may be more of a rough measure of effectiveness than a precise indicator.
Average Weekly Sales = Sales* / 52 Average Sales per Customer Transaction = Sales /
Number of Customer Transactions
INDUSTRY SCORECARD
Financial Indicator Current Period Industry RangeDistance from
Industry
Current Ratio 4.37 1.70 to 2.90 +50.69%= Total Current Assets / Total Current Liabilities
Explanation: Generally, this metric measures the overall liquidity position of a company. It is certainly not a perfect barometer, but it is a good one. Watch for big decreases in this number over time. Make sure the accounts listed in "current assets" are collectible. The higher the ratio, the more liquid the company is.
Quick Ratio 3.50 0.70 to 1.40 +150.00%= (Cash + Accounts Receivable) / Total Current Liabilities
Explanation: This is another good indicator of liquidity, although by itself, it is not a perfect one. If there are receivable accounts included in the numerator, they should be collectible. Look at the length of time the company has to pay the amount listed in the denominator (current liabilities). The higher the number, the stronger the company.
Inventory Days* 24.76 Days 15.00 to 45.00 Days 0.00%= (Inventory / COGS) * 365
Explanation: This metric shows how much inventory (in days) is on hand. It indicates how quickly a company can respond to market and/or product changes. Not all companies have inventory for this metric. The lower the better.
Accounts Receivable Days* 2.04 Days 1.00 to 5.00 Days 0.00%= (Accounts Receivable / Sales) * 365
Explanation: This number reflects the average length of time between credit sales and payment receipts. It is crucial to maintaining positive liquidity. The lower the better.
Accounts Payable Days* 25.14 Days 5.00 to 30.00 Days 0.00%= (Accounts Payable / COGS) * 365
Explanation: This ratio shows the average number of days that lapse between the purchase of material and labor, and payment for them. It is a rough measure of how timely a company is in meeting payment obligations. Lower is normally better.
Explanation: This number indicates the percentage of sales revenue that is paid out in direct costs (costs of sales). It is an important statistic that can be used in business planning because it indicates how many cents of gross profit can be generated by each dollar of future sales. Higher is normally better (the company is more efficient).
Net Profit Margin -8.52% 0.50% to 4.00% -1,804.00%= Adjusted Net Profit before Taxes / Sales
Explanation: This is an important metric. In fact, over time, it is one of the more important barometers that we look at. It measures how many cents of profit the company is generating for every dollar it sells. Track it carefully against industry competitors. This is a very important number in preparing forecasts. The higher the better.
Interest Coverage Ratio N/A 5.00 to 10.00 N/A= EBITDA / Interest Expense
Explanation: This ratio measures a company's ability to service debt payments from operating cash flow (EBITDA). An increasing ratio is a good indicator of improving credit quality. The higher the better.
Debt-to-Equity Ratio 0.50 1.00 to 2.50 +50.00%= Total Liabilities / Total Equity
Explanation: This Balance Sheet leverage ratio indicates the composition of a company’s total capitalization -- the balance between money or assets owed versus the money or assets owned. Generally, creditors prefer a lower ratio to decrease financial risk while investors prefer a higher ratio to realize the return benefits of financial leverage.
Industry Comparison
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Current Ratio
Liquidity Ratios
0.00
0.20
0.40
0.60
0.80
1.00
1.20
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Quick Ratio
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Debt-to-Equity Ratio
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Interest Coverage Ratio
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
5.00
12/31/2005 12/31/2006 12/31/2007 12/31/2008
Debt Leverage Ratio
Financial Leverage / Coverage Ratios
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Gross Prof it Margin
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Net Prof it Margin
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Return on Assets
Profitability Ratios
0.00
10.00
20.00
30.00
40.00
50.00
60.00
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Accounts Receivable Days
0.00
10.00
20.00
30.00
40.00
50.00
60.00
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry
Accounts Payable Days
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
12/31/2005 12/31/2006 12/31/2007 12/31/2008 Industry