Exceptional Financial Planning and Analysis Services at Affordable Rates

Financial planning counts as a major portion of any business plan. If you want to be succeeding, you should optimize the financial process deeply and follow it keenly. Financial planning and management services show a direction to the business to manage your finance related issues. They will facilitate you to make your financial plans stronger which will help you to fight against any kind of difficulties related to finance.

If you are confused in taking the perfect decision about any finance related need such as: If you want to invest but you don't have proper knowledge about the market conditions, at that time professional financial planner and financial expert will help you out to solve your queries. If you are running your own business and have some finance related problems and seeking help of professionals, you should outsource all your finance related requirements.

Financial planning services are not only necessary for an firm but also for companies as it shows the different elements of finances which aiming of building, maintaining and maximizing net profit of the firms and companies. The financial experts provide the solutions for financial issues such as investment, retirement planning and other financial protection.

Financial planning services have different roles to customize requirements of the firms and companies to change their financial strategies at the different stages. We can say that a financial plan is the leader which controlling and managing business expenses efficiently. In other words, financial planning and analysis is a process almost for money management that includes tax planning, budgeting, retirement and estate planning, insurance and investment strategies.

Financial Planning and Analysis includes the following criteria:

o Financial Analysis
o Ratio Analysis
o Financial Statement Preparation
o Financial Statements Analysis
o Budgeting Solutions
o Cash Flow Management
o Cash Flow Statement Preparation
o Cash Flow Statement Analysis
o Balance Sheet Preparation
o Monthly, Quarterly & Annual Management Reports Preparation
o Generating Customized Reports as per requirements

If you want to handle your financial related requirements, then Outsourcing Bookkeeping Service is the best option for you. At OBKS, you will get financial analysis, ratio analysis, financial statement analysis, preparation of income statement, balance sheet preparation and reconciliation, cash flow statement analysis and management.

Analysis of Financial Statements

The process of evaluation which is critical about financial information contained in the financial statements in order to understand and make decisions regarding the operations of the firm is called 'Financial Statement Analysis'. It is basically a study of relationship among different financial facts and figures as given in a set of financial statements, and the interpretation thereof to gain an insight into the operational efficiency and profitability of the firm to assess its financial health and future prospects. The term analysis is nothing but simplification of financial data by classification methods given in the financial statements. Interpretation means explaining the significance and meaning of the data. These two are complimentary to each other.

Analysis is useless without interpretation, and interpretation without analysis is difficult or even impossible. Financial analysis is the process of identifying the financial weakness and strengths of the firm by properly establishing relationships between the different items of the profit and loss account and the balance sheet. Financial analysis can be undertaken by management of the firm, or by parties outside the firm, viz. owners, trade creditors, lenders, investors, labor unions, analysts and others. The nature of analysis will differ depending on the purpose of the analyst. A technique frequently used by an analyst need not necessarily serve the purpose of other analysts because of the difference in the interests of the analysts. Financial analysis is useful and significant to different users in the following ways:

Finance manager: Financial analysis focuses on the facts and relationships related to managerial performance, corporate efficiency, financial strengths and weaknesses and creditworthiness of the company. A finance manager must be well-equipped with various tools of analysis to make rational decisions for the firm. The tools for analysis help in studying accounting data so as to determine the continuity of the operating policies, investment value of the business, credit ratings and testing the efficiency of operations.

Top management: The importance of financial analysis is not limited to the finance manager alone. Its scope of importance is quite broad which includes top management in general and the other functional managers. Management of the firm would be interested in every aspect of the financial analysis. It is their overall responsibility to see that the resources of the firm are used most efficiently, and that the firm's financial condition is sound. Financial analysis helps the management in measuring the success or otherwise of the company's operations, appraising the individual's performance and evaluating the system of internal control.

Trade creditors: A trade creditor, through an analysis of financial statements calculates not only the urgent ability of the company to meet its obligations, but also judges the probability of its continued ability to meet all its financial obligations in future. Trade creditors are interested in the firm's ability to meet their claims over a short period of time. Their analysis will, therefore, confine to the evaluation of the firm's liquidity position.

Meanings and Importance of Financial Statement Analysis

All financial statements are essentially historically historical documents. They tell what has happened during a particular period of time. However most users of financial statements are concerned about what will happen in the future. Stockholders are concerned with future earnings and dividends. Creditors are concerned with the company's future ability to repay its debts. Managers are concerned with the company's ability to finance future expansion. Despite the fact that financial statements are historical documents, they can still provide valuable information bearing on all of these concerns.

Financial statement analysis involves careful selection of data from financial statements for the primary purpose of forecasting the financial health of the company. This is accomplished by examining trends in key financial data, comparing financial data across companies, and analyzing key financial ratios.

Managers are also widely concerned with the financial ratios. First the ratios provide indicators of how well the company and its business units are performing. Some of these ratios would ordinarily be used in a balanced scorecard approach. The specific ratios selected depend on the company's strategy. For example a company that wants to emphasize responsiveness to customers may closely monitor the inventory turnover ratio. Since managers must report to shareholders and may wish to raise funds from external sources, managers must pay attention to the financial ratios used by external inventories to evaluate the company's investment potential and creditworthiness.

Although financial statement analysis is a highly useful tool, it has two limitations. These two limitations involve the comparability of financial data between companies and the need to look beyond ratios. Comparison of one company with another can provide valuable clues about the financial health of an organization. Unfortunately, differences in accounting methods between companies sometime makes it difficult to compare the companies' financial data. For example if one company values its inventories by the LIFO method and another firm by average cost method, then direct comparisons of financial data such as inventory valuations are and cost of goods sold between the two firms may be misleading. Some times enough data are presented in foot notes to the financial statements to restate data to a comparable basis. Otherwise, the analyst should keep in mind the lack of comparability of the data before drawing any definite conclusion. Nevertheless, even with this limitation in mind, comparisons of key ratios with other companies and with industry averages often suggest avenues for further investigation.

An inexperienced analyst may assume that ratios are sufficient in themselves as a basis for judgment about the future. Nothing could be further from the truth. Conclusions based on ratio analysis must be regarded as tentative. Ratios should not be viewed as an end, but rather they should be viewed as a starting point, as indicators of what to pursue in greater depth. They raise may questions, but they rarely answer any question by themselves. In addition to ratios, other sources of data should be analyzed in order to make judgments about the future of an organization. They analyst should look, for example, at industry trends, technological changes, changes in consumer tastes, changes in broad economic factors, and changes within the firm itself. A recent change in a key management position, for example, might provide a basis for optimism about the future, even though the past performance of the firm may have been mediocre.

Few figures appearing on financial statements have much significance standing by themselves. It is the relationship of one figure to another and the amount and direction of change over time that are important in financial statement analysis. How does the analyst key in on significant relationship? How does the analyst dig out the important trends and changes in a company? Three analytical techniques are widely used; dollar and percentage changes on statements, common-size statements, and financial ratios formulas.