Most business owners do not understand how to use financial statements to manage their businesses “by the numbers.”
Instead, they use substitute indicators which betray them, such as amount of cash in the bank. This often has little to do with profitability and the resulting taxes.
Some business owners believe that the faster you grow the better. However, studies show that companies can grow themselves into bankruptcy because they run out of cash and working capital.
Financial tools can help avoid disaster and guide owners toward greater profitability, cash flow and independence from the drudgery of petty problem solving.
Over 93% of businesses fail because of mismanagement. Of those that failed, over half were profitable, but failed because of mismanagement of cash flow. Source: Dunn and Bradstreet
The “bean counter” mentality… Most traditional CPAs insist on performing obsolete practices by preparing financial statements in a format which most business owners do not understand and cannot use to improve their financial condition.
The reason? “That’s the way we’ve always done it.”
Provident Financial Services has developed a simple way to communicate financial information for non-accountants. We have a consistent history where business owners can use our reports to manage their businesses to help control costs, increase profits and improve cash flow.