FINANCIAL HEALTH CHECK
Financial health check is performed to analyse a company’s financial health. It is often necessary to assess how well the business is performing in comparison with the rest of the industry as a whole so that managers can pinpoint where problems lie.
Looking at the financial forecast for your company is one of the best places to begin. Checking financial statements and comparing the forecasts with the real monthly performance while also bench marking the business in order to compare its performance metrics with the rest of the industry helps to identify problems. Reviewing company operational costs and monthly payments allows identification of areas where changes can be put into practice, and reviewing your staffing, equipment and departments can also help your to determine the areas of business which are most efficient. By examining your services and products you can see where prices can be cut or increased while looking at which of your customers or clients make your business the largest sums is also important. Expenses are one further area of consideration to see where costs can be cut.
FINANCIAL HEALTH CHECK PROCESS
The financial health of a company is able to be analysed by understanding how well the company’s financial performance is functioning in comparison to the performance of its industry as a whole. The process involves reviewing, analysing and checking a range of financial details business-wide including:
- Operational costs
- Staffing costs
- Services to clients
- Budgets
- Expenses
Advice for Financial Health Check
Carrying out a health check on your company’s finances will help to manage your money more effectively and help you to save money. As certified accountants, we can perform this service for your business and help you to pinpoint areas where change is necessary and where cuts can be made.
