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Behind On Your Books,
Business Owners?

Let Me Rescue Your Financials Today!

Behind On Your Books,
Business Owners?

Let Me Rescue Your
Financials Today!

How to Analyze Financial Statements For Business Decisions

by | Mar 24, 2023 | Accounting, Bookkeeping

A financial statement looks straightforward to read, right?


For most Owners and Executives, they’re familiar with the financial statements form their businesses and companies, but… 

They overlook a number of important pieces of vital information that could make their operations more money. 

This is why it’s so important to effectively analyze and understand a financial statement beyond “money in, money out.” 

I’m your local, expert outsourced accounting department for a third of the cost. 

With more than 15 years of experience, I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you’d like so you know exactly where your business stands. 

This is where Local Accounting Services can help you a ton with your accounts payable system and processes.

As your Outsourced Accounting Department, I’m going to share the six steps to effectively analyze your financial statements, so you can make better decisions for your operation.

6 Steps to an Effective Financial Statement Analysis

There are three key areas on a financial statement that you want to understand: 

  1. The structure of the financial statements
  2. The economic characteristics of the industry in which the firm operates and
  3. The strategies the firm pursues to differentiate itself from its competitors.

Within these three key areas, you’ll find a plethora of information that you can leverage to make better, more informed decisions for the future success of your operation. 

Here are the 6 steps to analyze your financial statements: 

#1. Identify the Economic Value Chain

Determine the industry economic value chain between creation, manufacturing, distribution, and more. This tells you what it costs to generate your operation’s products, services, or otherwise. It also shows you how much you make because of this value chain. 

Typically, you can use what’s called the Porter’s Five Forces to analyze this and get the information you need. 

#2. Identify Company Strategies

Look at the nature of the service/product being offered. Is it unique? What are the profit margins? Do you control creation and/or brand loyalty? Other factors that matter here: supply chain integration, geographic diversification, and industry diversification. 

This looks at how you’re manufacturing, fulfilling, and delivering to your customers. 

#3. Assess Quality of Financial Statements

Not all financial statements are created equal. It’s important you assess the quality of your financial statements within the context of relevant accounting standards. Examine balance sheet accounts, recognition, valuation, classification, and more. Answer the question: 

Does this balance sheet represent the company’s economic position?

Answering this question will qualify the report OR it will put you on the path toward WHY you need to dig deeper into the data. 

#4. Analyze Profitability and Risk

The upside to taking risk is more money. This is the game Owners, Executives, and Entrepreneurs play every single day. That’s why it’s important to understand how a financial statement shows you liquidity, asset management, profitability, debt management/coverage and risk/market valuation, and more. The ratios between these will give you a high-level view of the revenue and risk your operation provides. 

Determine how profitable your operation is compared to it’s risks and liabilities. 

#5. Prepare Forecasted Financial Statements

The next step in leveraging financial statements to grow and scale is projection. Put your operation on a determined path to success within a financial statement. Take the historical patterns and project them into the future. Do you see growth or collapse? What’s the outcome at 12 months, five years, 25 years, and beyond? This forecasted look at your company will give you some insight into what you need to do now to turn tomorrow into a success story. 

Use reasonable assumptions on projections from financial statements so you can understand exactly where your financials will stand in months to years from now. 

Ready to get spot-on, accurate reports–weekly, monthly, quarterly, or whenever you want and have an Expert explain them to you?

How Do I Hire Virtual, Outsourced Bookkeeping & Local Accounting Services?

Hire me, your Local, Master Outsourced Bookkeeper & Expert Virtual Accountant, today.

I bring your books current the very first time. Bringing back months and years!

I deliver accurate, spot-on reports weekly, monthly, quarterly, or whenever you like without fail. 

And, I help you forecast your financial future so you can know exactly where your business stands financially. 

Don’t let behind books and inaccurate accounting get in the way of growing your business.

Hire me, the Top Rated Local® Master Bookkeeper & Expert Accountant, to rescue your books now!



I am so happy I found Kendra and her bookkeeping and CPA services! They have been so efficient, reliable, friendly and accessible. I was previously with another company for 30 years and do not regret making this change.

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My company engaged Kendra for bookkeeping and accounting services and I am very happy that we did. Kendra is a pleasure to work with and always accommodating via phone or on our Zoom meetings.

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Furever Bookkeeping has been our financial savior. Our small business went through several bookkeepers before hiring Furever Bookkeeping. Furever Bookkeeping has been responsive, adaptable, and provided excellent communication throughout the pandemic. The level of customer service we have experienced is unmatched for a small business such as ours.

-Orman M.



Kendra brought years of my business’s financials current and balanced my books quickly. She and the whole furever bookkeeping squad know what they’re doing. Helped my business exponentially.

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Kendra served as our law firm’s outside, independent bookkeeper. When she started working for us she inherited financial books that were a complete mess. She was able to straighten them out and, since then, has kept our books accurately and complete. I can ask her at anytime where we stand financially and she can tell me instantly. She is very personable and a delight to work with. During her tenure working with us, even though she was an independent contractor, she became our firm’s CFO. I do not hesitate to recommend her.

-Fred P.



The entire Furever Bookkeeping team helped my Consulting Firm and me streamline our Accounting system using technology for efficiency sake. This saved us a ton. Kendra and her team are gems.

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Kendra has been instrumental for our business. If you are looking for an accounting team that is professional, timely, and great at communicating call Furever Bookkeeping. They were a life saver for my company!

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Kendra’s team is top notch and reconciled back years under budget. Thanks to the entire team. We continue to grow as a direct result of her knowledge and strategy.

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Kendra Moore
Owner/Master Bookkeeper
Expert Accountant

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Our clients range in annual revenue from $200K up to in excess of $75M+. Simple or complex financials across MULTIPLE industries are our Core Capabilities.

About Me

Furever Bookkeeping & Accounting Services brings 15+ years of Expert Bookkeeping & Master Accounting to each of our clients. Kendra Moore and her team have over 37 years experience in: Bookkeeping & Accounting. Serving MD, VA, DC, DE, PA & Surrounding Areas.

Our Certifications

We are approved Accounting & Bookkeeping Federal Government Contractors, DUNS #079524284, as well as for the State of Maryland, NAICS #541219.

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