Financial Analysis

Financial Analysis

Information is powerful, especially fiscal information. Whether you’re looking to invest in a business and want to know more about it, or you’re running a business and want to decide on a particular course of action, financial analysis can help you work through the decision-making process in an informed fashion.

Below, you’ll learn about the financial analysis services that Mauricio Midence offers. This includes explaining the various types of financial analysis, differentiating financial analysis from an audit, and letting you know where you can get this type of analysis in California.

What Are The Types of Financial Analysis?

The type of financial analysis you get will vary largely based on both the situation of the business in question and your current goals.

Vertical and horizontal analysis are the two most common types. Vertical analysis, also known as a common-size income statement, allows you to see the percentage of revenue going to various expenses.

Horizontal analysis allows you to compare your business’s performance over time. This allows you a broad view of your company’s performance, which in turn can be used to spot periods of time where your financial information is irregular.

Along with these, short term analysis is also beneficial. It allows you to see if your business has the appropriate amount of liquidity, given the current state of your working capital.

For most forms of financial analysis, you’ll want to use other companies in your industry as a benchmark. This allows you to understand where you’re beating your competitors and where you need to use their example to better your own business.

Multi-company comparison allows you to compare your business’s financial to one competitor, while industry comparison allows you to see how you compare to the average financials in your industry.

What’s the Difference Between Financial Analysis and an Audit?

Financial analyses and audits are very similar in that they both involve carefully examining your books. However, audits are designed to ensure there aren’t any discrepancies in your books. This is important legally to ensure that your taxes are filed properly, but it also allows you to spot any errors that may be hampering your ability to properly examine financial information.

Financial analyses, on the other hand, are more focused on helping you make good decisions. This means an analyst will take a broader view of the current economic conditions -- finding the financial strengths, weaknesses, opportunities, and threats that can impact your business’s future success -- in order to help you capitalize on potential courses of action.

Looking for Expert Financial Analysis in California?

At Mauricio Midence, we’re dedicated to giving you the analysis you need to make informed financial decisions. Whether you’re a business owner in need of an audit or you’re putting together an estate and want to make sure it’s optimized for financial distribution, Mauricio Midence is here for you.

Any questions about our services? Want to speak with a financial expert? If so, don’t hesitate to contact us by calling (510) 827-1352, emailing midencemtaxservices@gmail.com, or filling out our contact form.
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