Insight into your financial situation
A financial analysis answers questions such as: What is the financial status of my company? And how does the financial future look like?
But a financial analysis may also be necessary when applying for a credit facility at a bank or attracting investors.
A financial analysis also relates to yourself as an owner. How can I arrange my pension? And what does this mean for tax purposes? What if I become incapacitated? All questions that we can look at together.
Christian Cruden – Administrator and Financial Advisor
A financial analysis can be very extensive and detailed, or very globally. In any case, it includes the following analyzes:
- The vertical analysis: an analysis of the structure of the assets, liabilities and results.
- A horizontal analysis: a comparison between the different annual accounts.
- A ratio analysis: an analysis of a ratio that provides more insight into a specific aspect of the financial-economic situation of the company.
- The cash flow analysis: an analysis of the sources and the use of the money (your capital).
In order to be able to make a good forecast, we take into account the various aspects that influence the data: the sector in which you are active, type of company, the state of the economy and the dependence on suppliers.
¿Why a forecast?
Financial forecasts are not only useful but also necessary! Even though it is very obvious, it is useful to investigate whether the revenues and expenses are in balance with each other and which items affect this. A liquidity forecast is also important; your company may be able to make a profit, but does the money come in on time to meet all your obligations?
Types of Forecasts
In summary, numerous forecasts can be made for a variety of reasons:
- As management information
- As part of a business plan
- For a credit application
- When attracting investors
The most common and important forecast are of course the profit and loss forecast and the liquidity forecast.
Forecasts often go hand in hand with ratios that provide management or, for example, a bank or investor with the necessary information. You can think of:
- Solvency ratio (how much debt does your company have)
- Quick ratio and current ratio (the liquidity of the company)