key accounting ratios

Key Accounting Ratios

You can monitor your business’s performance with tools called key accounting ratios, which help you to interpret financial information about your company. The more you know about how your business is performing, the easier it will be for you to make informed decisions about how to manage and grow your business. The guide explains key ratios to help you address these vital issues: Is your business solvent? Is your business profitable? What is your return on assets? How is your business performing in key areas? The records you keep can provide a great deal of information about your business and its performance. Details of sales made to customers, purchases made from suppliers and payments made to employees can all be used to see how the business is doing. Just as importantly, the infor... »