Financial reporting needs to be accurate and timely. Financial reporting is not just a profit & loss statement, a balance sheet, a cash flow statement with a lot of notes. This is just a format of financial reporting. Under its format, every figure has its own story and its own meaning.
• How is your gross margin compared to last year and to your peers in the same industry?
• Which costs are fixed costs and which are variable costs? What is your breakeven point?
• How should you value your stock? Did you compare your accounting stock amount to the actual stock taking amount? Why there is a big difference? Which stocks are not moving or obsolete? Do you need to hold that much stock?
• How long is your average debtors’ term? Are they recoverable? What is the likely hood for your major debtor to go broke? Apart from offering discount, is there any other way you can get payments on time?
• How competitive is your purchase price and credit term? Are there any currency risk and how can you manage it?
The lists can go on and on.
Contact ML Tax Solution on firstname.lastname@example.org or 03 95338980 to let us reveal the magic of financial reporting for you.