Put those Audited Financial Statements to Work
September 14, 2017Share:
By: Michelle Pinochet, CPA
So you received your financial statements from the auditor. Now what? Many managers only see financial statements as a historical snapshot of their financial performance to discuss at meetings and then to file and collect dust. How can these numbers and information help in the future?
Your financial data should be used to develop analytics and comparisons to industry or competitive benchmarks to better see how your organization is performing compared to internal expectations (comparison to budget), internal historical results (current year compared to prior year) and external benchmarks (you vs. competition or industry). Comments from the auditors’ “internal controls” and “governance communication” letters can provide great feedback on making your internal financial and operational processes more effective and efficient. Once you get past the required technical verbiage within the letters, the auditors’ comments can supply great insights for operating more profitably. Reviewing the auditors’ feedback should be your starting place for a meaningful conversation.
Need help navigating your financial statements and putting their data to use? Give our team a call today!