You may (or should) know your business more than the person providing bookkeeping services Orange County for your business, but there is a lot of information that she or he knows, well more than you. Your financial statements and reports can help you make informed decisions about your business only if you had someone to help you in analyzing it all. Here are some things your bookkeeper knows about your business.
The cash flow statement
Your bookkeeper probably knows your cash flow statement more than you. The statement shows how income and changes in balance sheet accounts affect your company’s cash flow access. The cash flow statement shows the ability of your company to pay bills in the short term. This can be with the aim of covering important expenses such as the payroll.
Burn rate
Your Orange County bookkeeping services provider also knows about your burn rate. This is one of the most important data for business owners. This is a single figure showing the amount of money you spend per month. You will know how long you can stay in business before you start making a profit when the burn rate is evaluated in comparison to the amount of cash present in your company.
Profitability ratios
You can get different types of these ratios in your business and they reveal how well your company is doing as far as making money is concerned. They indicate how well you generate money compared to expenses and costs. These ratios don’t show the amount of money you have to pay expenses and cover debts. They indicate how well your business is making money.
The company that provides you with bookkeeping services Orange County should have all the above information on their fingertips. They should be able to avail the information to you whenever you need it. Read More: http://www.kayatax.com/
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