Review Engagement Explained (and How It Differs from an Audit)
Not every business needs the depth or expense of a full audit to confirm its financials. For many, a review engagement does the job. It is a more straightforward, affordable way to check that financial statements look accurate. It’s ideal for small to mid-sized companies or privately held businesses, and a great way to […]
What Are Primary Limitations of the Balance Sheet (and How to Overcome Them)
The balance sheet is one of the pillars of financial planning, there’s no doubt on that one. It shows assets, liabilities, and equities – a true snapshot of what a company owns and owes. Therefore, it’s no wonder that investors, creditors, and managers take it as the starting point when making decisions. It displays the […]
Balance Sheet Ratios: Key Metrics for Financial Health
Balance sheet ratios are a tool you can use to assess a company’s financial position at a specific point in time. Yes, the balance sheet shows you what the company owns (its assets), what it owes (its liabilities), and its shareholders’ equity. Ratios, on the other hand, can help you get a clearer picture of […]
How to Do Account Analysis
Account analysis is one of the most powerful tools you can use to stay on top of your company’s financial health. Most commonly used by accountants and FP&A analysts, this method provides the in-depth insights you need to make smarter decisions. It’s used for fine-tuning your budget, tracking trends, optimizing your forecasts, and keeping your […]
Horizontal Analysis: Definition, Formula & Example
Horizontal analysis is an essential tool for making sense of financial trends. By tracking changes across periods, this method helps businesses spot patterns and make informed decisions. From monitoring growth to managing costs, horizontal analysis gives you the insights needed to stay ahead and plan for what’s next. Ready to see how it can benefit […]
A Step-by-Step Guide to Building a 3-Statement Financial Model
Imagine you had to drive a car without a dashboard. You wouldn’t know how much gas you had, if the engines were working fine, or how fast you were going. Well, it’s pretty much the same if you’re running a business without a clear sense of its finances. This is where the 3 statement financial […]
Vertical Analysis: Definition, Formula & Example
Vertical financial analysis is a key part of financial statement analysis that helps you understand how your company performs. In this blog, we’ll explain what it is exactly, how it compares to other types of analyses and how top companies use it to improve budgeting, forecasting, and decision-making. Read on to learn everything about vertical […]
A Complete Guide to Financial Statement Analysis for Strategy Makers
In a nutshell, financial statement analysis is examining a company’s financial statements to assess its financial health and performance. It’s not just looking at numbers though. It’s about making sense of them so you find risks, opportunities to grow and make good business decisions. Many companies overlook important things in these statements, or they […]
7 Reasons Why Forecasting is Important For Your Business
If you absolutely don’t care where your business is going, or whether there are additional opportunities to benefit from along the way – then this blog is probably not for you. But if you’ve ever asked yourself why is forecasting important, you’re already one step ahead. Forecasting in financial terms is the process of using […]
Budget Forecasting Methods Every CFO Should Know
Budget forecasting methods only succeed if they match your business model.Finance chiefs aren’t short on forecasts – they’re short on confidence in forecasts. A rolling forecast won’t cut it if inputs are guesses. A zero-based budget won’t work if it’s revised every year. If your three-week lag in mid-year reforecasting, your process is wrong.This book […]