1 – Corporate Accounting: Gathering Puzzle Pieces

  • Record daily transactions
  • Build and track budgets
  • Reconcile accounts for month-end close
  • Invoice clients and apply payments to invoices
  • Accounts Receivable follow-up and analysis
  • Payroll Processing

2 – Ratio Analysis: Overall Financial Health

  • Liquidity – shows the firm’s ability to pay off debts as they become due
  • Asset Management – also known as efficiency or activity ratios that evaluate how efficiently management uses resources and how much activity is generated from assets
  • Debt Management – shows the extent to which a company finances its assets with debt
  • Profitability – shows the combined effects of liquidity, asset management, and debt on operating results
  • DuPont Analysis – Return on Common Equity ratio that measures the rate of return on common stockholders’ investment

3 – Trend Analysis: Cutting Costs and Budgeting

  • Uses historical data to point out financial trends
  • Helpful with budgeting for future projects and finding ways to cut costs
  • Keeps track of increases and decreases in gross margin