What Do You Look For When “analyzing” Financial Reports?

1.	What Do You Look For When “analyzing” Financial Reports?
Answer» CONSISTENCY: Such as expenses that are expected to repeat every month and Income matching the business activities. Common Sense: do the numbers make sense or are the numbers expected. Generally, there should be no negative numbers unless there is a refund you are aware of. Trends and RELATIONSHIPS: such as sales going down or expenses going up. Also the percentage of direct COSTS VS. revenue, etc… Consistency: Such as expenses that are expected to repeat every month and Income matching the business activities. Common Sense: do the numbers make sense or are the numbers expected. Generally, there should be no negative numbers unless there is a refund you are aware of. Trends and Relationships: such as sales going down or expenses going up. Also the percentage of direct costs vs. revenue, etc…

Answer»

CONSISTENCY: Such as expenses that are expected to repeat every month and Income matching the business activities.

Common Sense: do the numbers make sense or are the numbers expected. Generally, there should be no negative numbers unless there is a refund you are aware of.

Trends and RELATIONSHIPS: such as sales going down or expenses going up. Also the percentage of direct COSTS VS. revenue, etc…

Consistency: Such as expenses that are expected to repeat every month and Income matching the business activities.

Common Sense: do the numbers make sense or are the numbers expected. Generally, there should be no negative numbers unless there is a refund you are aware of.

Trends and Relationships: such as sales going down or expenses going up. Also the percentage of direct costs vs. revenue, etc…

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