Financial Analysis
Financial Analysis
Financial Analysis Business Consulting in Phoenix
Seeking the help of a consulting firm experienced in financial analysis isn’t always a sign of problems. Businesses turn to financial analysis consultants like those at H&H Accounting Services at many different stages of growth or performance.
We can help Phoenix-area businesses better understand how to maintain parity with or outperform competitors, generate the documentation necessary to successfully apply for additional funding or analyze risks and headwinds that may appear in the future. Our financial analysts are ready to add clarity and transparency to your business finances.
What Does a Financial Analyst Look at When Consulting for a Phoenix Business?
The financial analysts at H&H Accounting Services will pay close attention to a variety of your statements, including the cash flow statement, income statement (profit and loss statement) and your business’s balance sheet.
There are a variety of questions financial analysts seek to answer:
- Has your profitability changed and why?
- Which of your service or product lines are driving the highest revenue and expenses and is there an optimal mix to improve profits?
- Are there dramatic differences in profit between different units within your business?
- Are you maintaining sustainable operational cash levels?
- Is eking out additional growth highly capital intensive?
- Are there weaknesses in the financial structure of your business?
Financial Indicators
There are a variety of financial indicators that may be relevant to your Phoenix business. Our financial analysts will want to examine things like your profitability ratio, efficiency ratio, debt ratio and liquidity ratio.
Profitability ratios are key to measuring your business’s performance compared to your competitors in terms of sustainability. Liquidity ratios and debt ratios are important for determining how well or for how long you can continue operating at existing expense or debt levels. Efficiency ratios are helpful for improving cash flow. Calculating accurate efficiency ratios usually requires an investigation of your liabilities and current receivables.
Performing Financial Analysis Should Be Coupled With Other Aspects of Business Consulting
Financial analysis can be valuable on its own, but businesses usually get the most out of the exercise when it’s accompanied by targeted consulting goals to improve or address specific problems identified during analysis.
Financial analysis may be an important first step as you conduct performance reviews, accurately value your business for potential sale, establish a better tax plan or prepare for litigation. Financial analysis is also important if you want to establish a solid business plan or embark on any large financial restructuring project.
Creating Accurate Financial Models
The goals of financial modeling vary depending on the maturity of your business and the current challenges you are facing. Whether you require business valuation for a potential sale or merger, ratio analysis to determine the sustainability of current debt levels or financial statement projections to improve your chances for qualifying for funding, we can help.
Risk Analysis
Ignoring problems will never make them disappear, even if it’s sometimes easier to pretend a risk doesn’t exist. Risk analysis helps you better prepare your business for adverse events and ensure your business has the flexibility and resources to weather any storm. Recent events, like a pandemic, market volatility and an uncertain economic future are all examples of potential adverse events that may damage your business.
Our business consultants excel at assisting Phoenix companies and corporations of all sizes identify risks and mitigate them.
Let H&H Accounting Services Help Your Phoenix Business Thrive
The team at H&H Accounting Services is dedicated to helping Phoenix businesses thrive. We do so with a combination of highly accurate bookkeeping, business tax preparation and a variety of business consulting services.
Call us at (480) 561-5805 for a free one-hour consultation.