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What role does financial analysis play in helping you reach your company goals?

by , 10 September 2014
So you want to create a plan to help achieve your company goals. This financial planning is an important step is helping your company get to where you want it to.

You know you have to set a goal, create a time line, use a budget and control your spending to help you reach your goal.

But you may have forgotten about another very important tool: Financial analysis.

Here's the role this plays in your financial planning...

 

This is the role of financial analysis in your financial planning

 
Financial analysis plays an important role throughout your company's growth. When you first put your plan in place, you must do a full financial analysis on your finances thus far. This will help give you an idea of how much your company has grown and at what rate.
 
This creates a benchmark for you to use going forward. Without this step, you can't gauge if your plan improves your company's rate of growth or not.
 
But you mustn't just do this analysis in the beginning. Here's when you should do it again...
 
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Analyse financial statements, identify errors with checklists, step-by-step instructions & examples
 
 
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You should do financial analysis at six month intervals

 
It's important to re-analyse your company's financial growth and position at least every six months so you can see if your plan is working.
 
This is where you'll compare your rate of growth to see if there's an improvement.
 
This is very important as it can help you identify how effective your plan is and change it if you don't see the results you want to. 
 
So whenever it comes to your financial planning, be sure to include financial analysis every six months to monitor and track your company's growth.


PS. Here is an amazingly simple way to manage your financials, with the Master Budget Series
 

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