In addition to financial performance, companies also have a social responsibility. Companies should decide what non-financial performance parameters to be judged by, and then measure these so achievements can be tracked and improved. The chief executive of the worlds biggest mining company, BHP Billiton, said in October 2011 that companies should include in their performance…
Financial growth strategies
An organization should plan to grow. The growth achievements to-date will be already reflected in the financial statements. Future growth should be projected so its impact on the financials and cash flow can be planned. Growth will increase the size of the profit and loss / income statement as well as the balance sheet and…
Evaluate alternatives
Think about the alternatives before making a decision. To make a good decision, ask what financial and other information is relevant to making a choice. If you don’t have all the information, consider doing more research. Besides the financial implications, how will people be affected by your choice? If you use consultants or other people…
Business accounting
Business accounting can be: Historical – record of transactions that have taken place. Projecting (future) – shows the future financial picture of a budget. Traditional business accounting is an historical record of the finances of a business over a period of time. Examples: Revenue: What was the revenue amount achieved per month and for the…
Best balance sheet format for financial analysis
Traditional or financial. The traditional balance sheet has evolved over the years to fairly report the financial position of a business. However, it is not great when you want to do financial analysis. The ideal is to divide the balance sheet into two – those items that provide funding to the business (CASH, EQUITY, DEBT) on…
Analyze the balance sheet
The performance of a business can be determined by analyzing the balance sheet and the other financial statements. To calculate financial performance, one needs to do financial statement analysis. Various techniques are available for this analysis, for example the DuPont model, Economic value added and NOPAT. This website balancesheetwalk.com is particularly interested in the Financial…
“The financial statements are linked”