Financial Optics Releases a New Guide on How to Spot Red Flags in Financial Statements
Financial Optics just released a new guide on how to spot red flags in financial statements. And for any business, this is essential information for keeping an accurate reflection of financial health.
A financial statement is essentially a report card that reflects how a business is functioning and shows the pulse of the heart of any business. But red flags arise within financial statements that every small business owner, business executive, CEO, or accountant should be aware of.
Though there are quite a few red flags that may indicate financial problems, the following address the most common red flags a business owner or executive should be on the lookout for:
• Inaccurate numbers
• Increasing debt-to-equity ratio
• Multiple quarters or years of declining revenue
• Unsteady cash flow
• Too many “other” expenses
• Liabilities are much higher than assets
• Decreasing gross profit margins
It’s also good to note that the nature of a business and the products or services that a business provides will dictate the type of common red flags that a business owner may find in a financial statement. And since these red flags can be difficult to spot, it’s a wise decision to seek assistance from a reputable financial advisor.
Financial red flags should be primary concerns for all business owners. But as most business owners are busy keeping a business running, sourcing help with correcting finances may be the best path forward.
Financial Optics provides essential expertise and advice as support for your business and can help you to strengthen your financial statement process. With over 30 years of experience, the experts at Financial Optics can help any business owner mitigate errors and eliminate the stress that comes along with finding red flags and figuring out how to correct them.
Addressing red flags and putting your business back on the right track is essential for running a successful business venture. And if you’re interested in learning more about how you can find red flags hiding in your financial statements, you can contact Financial Optics by visiting the company website.
Tim Sernet
Financial Optics
+1 913-649-1040
email us here
