GJM Top 5 List: Questions to Ask When Reviewing Your Business Financials
Business financials can get complicated. Overwhelmed by a sea of numbers? A team of Gilmore Jasion Mahler accountants recently walked area businesspeople through the top 5 questions to ask when reviewing your financial statements. They discussed each major section of a financial statement and provided helpful tips on what to look for or ask about. “Chamber U: Understanding Your Financial Statements” was offered in partnership with the Toledo Regional Chamber of Commerce. Gilmore Jasion Mahler presenters included Steve Miller, CPA, Caitlin Bainter, CPA, Michael Brough, CPA.
The five key areas of focus:
1. The Report
- audit
- review
- compilation
- agreed upon procedures
2. The Balance Sheet
3. The Income Statement
4. Statement of Cash Flows
5. Footnotes
Top five takeaways:
- Make sure you know what type of service you are receiving
- Review debt agreements to see what service is required
- Review debt agreements for affirmative and negative covenants
- The statement of Cash Flows gives a clear vision of the health of your business
- Consider whether your basis of accounting is appropriate to meet the needs of your business
Steve Miller, Caitlin Bainter and Michael Brough are part of GJM’s Assurance team, working with businesses across the region to provide trusted guidance.
