Financial Analytics vs. Financial Reporting – Get the Real Story

Financial analytics and financial reporting – two seemingly similar processes with very different purposes and outcomes. The title of this article does not imply a sporting event, nor does it suggest legal action. In our world of finance, it simply denotes two specific processes conducted in the finance department of most organizations. On the surface, […]

How Analytics is Used to Predict the Future Financial Health of the Company

The process is automated and uses your own format to see and understand the data I like to visually see the company financial results. I look at the main financial statements, which include the income statement, the balance sheet and the statement of cash flows and using consecutive periodic reports (monthly) I compile a set […]

Analytics and the Financial Statements

Rely on your analytics software to gain insight into your company’s financial health through financial statements – past, present and future  As I am writing this, today is the end of another fiscal quarter for many companies, and for one of our manufacturing clients it is year-end.  In addition to typical year-end activities and making […]

Borrow Your Banker’s Mindset and Methods to Evaluate Your Own Business

How measuring your financial health the banker’s way can help you avoid trouble down the road Many SMBs rely on bank financing, usually in the form of lines of credit (LOCs) and term loans, both of which are backed up by the borrower’s assets.  With these LOCs and other loans come loan agreements, promissory notes, […]

Use Your FP&A Software for Scenario Planning

Get a handle on your plan and budget with multiple budget versions and what-if scenarios The first spreadsheet ever published, Visicalc, developed by Software Arts and published by VisiCorp in 1979 enabled its users to make changes to values in certain cells and have the entire electronic worksheet recalculate itself, almost instantly.  Users could enter […]

Workforce Planning in a Manufacturing Enterprise

How paying attention to workforce planning can positively impact the future financial health of the company Those who analyze personnel expenses quickly realize how big a portion of total company expenses this can be.  This is even more so in manufacturing companies where total cost of employment can reach 50% or more of total sales […]

All About Synchronized Financial Statements – Part 2

Your actual accounting financial statements are automatically synchronized; shouldn’t your FP&A forecasted financial statements behave the same way? In part 1 of this series we saw that whether a company’s accounting processes are manual (please don’t even think of it if you are looking to set up an accounting system for a new business!) or […]

All About Synchronized Financial Statements – Part 1

Your actual accounting financial statements are automatically synchronized; shouldn’t your FP&A forecasted financial statements behave the same way? As late as the early eighties computerized accounting was only viable, due to large expense and complexity, in large organizations.  I remember my first controller job at a small manufacturing company where everything was done manually, from […]

Financial Ratios and Loan Covenants – Your Company’s Vital Signs

Pay attention to financial ratios and loan covenants, both actual and forecasted, for a complete assessment of your business’ financial health This has been mentioned before.  It is one of the least discussed topics in SMB’s finance and many companies manage to continue operating and even thrive without paying attention to any of this.  Sadly, […]

Why You Should Forecast your Financial Dashboards – Part 2

Financial dashboards are powerful, more so if they forecast the future In the first installment of this article we examined the importance of representing financial data graphically and monitoring the visual representation over time using financial dashboards.  In this installment we will continue our discussion using a practical and very common example and a challenge […]