Understand the Income Statement

 

 

The Income Statement is one of the financial reports that you should be receiving from your accountant regularly. At least once a month, you should be able to see how your operations are doing. You will be able to react in a timely manner if you can see how your business fares in the market. If you are profitable and hitting your targets, the income statement will show that you are doing the right thing and you can push to achieve more. If you are incurring losses, you can immediately make corrective actions to nudge your business back to the right direction.

 

When a potential investor or creditor asks how risky your business is, how will your financials answer the question? The financial risks of your business can be assessed by answering these two questions: 1. How liquid is our company? and 2. How are the company's assets being financed?

 

For smaller companies that don't have the staff to dedicate to delinquent payments the inability to collect monies owed can erase their profits and cripple their growth. But there is a solution which can help companies no matter their size. Hire a commercial debt collection agency.