Planning and Analyses

BREAKEVEN POINT

Do you know your Breakeven Point? This breakeven point, along with your monthly sales goals could be displayed in your office, for all key management to see.

Every business needs to know their Breakeven Point.  This is the level of sales needed to cover all of your expenses.  This may not be your goal, your budget, nor your plan, but you should know this number.

Your banker probably knows your breakeven point.  If you don’t know your Breakeven Point, perhaps it’s time to give Ravencroft Accounting, LTD. a call.

BUSINESS PLANNING AND FINANCIAL PROJECTIONS:

Planning the future of your business begins with soundly prepared financial projections.  This analysis will provide you with a clear and understandable financial picture of where your business is heading.

Financial projections can include income statements, cash flow statements and balance sheets presented on a monthly or quarterly basis for one or several years.

Projections will help you to plan for such things as cash and loan requirements, inventory buildups, labor requirements and your breakeven point.

BUY OR LEASE EQUIPMENT

This is a common business and financial decision that businesses like to discuss with their CPA.  There is no black and white answer to this question.  Many factors need to be considered, and having a trusting and comfortable relationship with your CPA is important when you are looking at these kinds of issues.