What is monitoring of the financial situation?
Vesiir is the first in Estonia to introduce on the market a service that helps newly created small enterprises analyse the financial aspects of their business and manage their companies more deliberately and skillfully through regular monitoring of the financial situation and reporting.
Financial statements provide a lot of information about the company; however, they need to be read and interpreted properly for this purpose. Reports from several consecutive periods may lend to conclusions regarding future business. It follows that monthly monitoring of financial data will help you monitor on a regular basis the health of your company, evaluate emerging risks and adjust day-to-day managerial efforts.
Which indicators do we monitor?
- Balance sheet
- Balance sheet characterises the economic situation of the company and evolves as the result of activities in previous periods.
- Income statement
- We prepare income statements to see that revenues were greater than expenditure. However, a high profit figure is not always indicative of a healthy financial situation.
- Cash-flow statement according to the direct method
- The cash-flow statements prepared by us under the direct method shows you the actual movement of cash in your company.
- Return on sales – monitoring the economic efficiency of your company
- Net return on sales – how profitable is your company?
- Efficiency indicators – monitoring the use of your company’s assets
- Cash receipts. Receivables from customers. Average collection period.
- Inventories. Average days to sell the inventory shows the rate of asset turnover, i.e., within how many days on the average the company sells its inventories.
- Assets and fixed assets
- Liquidity indicators – your company’s ability to meet its debt obligations
- Indicators on the use of loan capital (where applicable)
- Other indicators (based on relevance and as agreed)
- Marketing costs
- General administrative costs
- Labour costs
- Average daily sales
- Average number of customers/purchases
- Changes in fixed costs
- Changes in the cost price and production costs of a product
- Changes in the selling price
- Costs of materials
- Depreciation costs
- Value of production sold
We will start with sitting down with you and review and compare the economic results of your company and your financial ratios with the average indicators of companies operating in the same or similar areas (up to 60 ratios can be compared).
