{"id":9967,"date":"2023-10-02T16:06:54","date_gmt":"2023-10-02T03:06:54","guid":{"rendered":"https:\/\/theaccountinghub.co.nz\/?p=9967"},"modified":"2024-03-04T16:28:49","modified_gmt":"2024-03-04T03:28:49","slug":"5-important-financial-ratios-for-your-small-business","status":"publish","type":"post","link":"https:\/\/theaccountinghub.co.nz\/5-important-financial-ratios-for-your-small-business\/","title":{"rendered":"5 important financial ratios for your small business"},"content":{"rendered":"
As a small business owner, you\u2019re likely already wearing many hats. But the hat of a financial analyst might seem a little oversized, particularly if your background isn\u2019t in finance or accounting. However, understanding financial ratios can be a game-changer for your business, helping you assess your business\u2019s financial health and make informed decisions.<\/span><\/p>\n Think of financial ratios as a thermometer for your business\u2019s financial health. These are calculations that compare one item in your financial statements to another. For instance, how much current assets you have compared to liabilities, or the percentage of each dollar of sales that remains after all expenses have been deducted.<\/span><\/p>\n They reflect the financial relationships vital to your business operations.<\/span><\/p>\n To harness the power of financial ratios, it\u2019s important to understand the financial relationships they represent and the implications for your business. Unless you are well-versed in accounting principles, consider engaging an accountant or bookkeeper to help you interpret these ratios.<\/span><\/p>\n Let\u2019s delve into some of the key financial ratios every small business owner should know:<\/span><\/p>\n The journey of understanding financial ratios might seem like traversing uncharted territories, but it\u2019s a journey worth embarking on. Decoding the language of financial ratios can provide invaluable insights into your business\u2019s financial health.<\/span><\/p>\n If you\u2019re feeling overwhelmed by the intricacies of financial ratios, don\u2019t worry. We\u2019re here to help! Feel free to contact us<\/a> and leverage our expertise.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" As a small business owner, you\u2019re likely already wearing many hats. But the hat of a financial analyst might seem a little oversized, particularly if your background isn\u2019t in finance or accounting. However, understanding financial ratios can be a game-changer […]<\/p>\nFinancial ratios: what are they?<\/b><\/h2>\n
The power of financial ratios<\/b><\/h2>\n
The ratios that matter<\/b><\/h2>\n
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