The purpose of financial analysis is to assess the viability of a business or a project. A financial analysis is usually performed on a regular basis, but it can also be triggered by specific opportunities or threats.
For example, a company may have a sudden need to replace its phone system or replace an expensive piece of material-handling equipment. Should it lease or buy? In order to make an informed decision, the company will need to review its financial position now and its expected future cash flows.
On a larger scale, a company may decide to divest itself of part of its operation. What effect would such a divestiture have on the company? Only a financial analysis will lead you to the best answer.
Business decisions are often difficult to make for two reasons. First, we often have less than perfect information. Second, there is always uncertainty about the future. What will interest rates be in a year? How will our sales be affected by changes in the economy? The questions are endless. We can help you assess the financial implications of any major decision you’re contemplating for your business so that you will make the best decisions possible.
Call us for a tax consultation, at 216-521-2100.
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