financial statements will tell everything about the business.the financial statements that includ the balance sheet, the income statement and the cash flow statement
while going through the monthly financial statements of the store, yoy may required the following details,
Your first task is to see the To find out whether you made a profit, you maysee revenues (or sales) and expenses (cost of doing business). Expenses are divided into two categories. Cost of goods sold is the total cost of the goods being sold.Operating expenses are the costs of operating the business except for the costs of things being sold. The difference between sales and cost of goods sold is your gross profit (or gross margin). The difference between gross profit and operating expenses is net income (or profit), which is often called the “bottom line.”
you may also check the previous period financial statment for the comparision.You may compare and check
- Reduce or increase your cost of goods sold .
- Reduce or increasesome of your operating costs (salaries, advertising, table use).
- Increase the quantity of units sold.
The Balance Sheet
while checking the balance sheet reports the following information you may check:
- The company’s assets: the resources from which it expects to gain some future benefit
- Its liabilities: the debts that it owes to outside individuals or organizations
- Its owner’s equity: the amount that has been invested by its owners and that owners can claim from its assets
for deciding that you store is sucessful or not you may decide the following things
positive profitabelity
reduction in cost
increse in profit comparision to the last year
there should decrease in bad debt
ratio analyses should be positive
incease in quantity of goods sold
By sum up of all this anaysis and Going through the monthly financial statements of the store, you will know the store had a successful month or it did not
