Accounting Helps You Make Better Financial Business Decisions (1)

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Accounting Helps You Make Better Financial
Business Decisions
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• In their financial accounting, there are a series
  of principles that businesses are required to
  follow, and in the U.S. most publicly traded
  companies follow the generally accepted
  accounting principles, or GAAP. This set of
  standards and best practices are used by
  accountants when totting up the figures and
  completing financial statements.
• Businesses can make important financial decisions
  based upon the following accounting data

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• Making investment decisions using financial
  accounting
• The accounting data recorded on the financial
  statements of an organization, such as the
  balance sheet, income statement and cashflow
  statement, can be immensely helpful in carrying
  out crucial analysis, and both investors and
  analysts use it to determine a companys value
  and credibility. This enables them to set price
  targets and better understand whether the price
  of a stock is of a fair value.

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• Without financial accounting and the information
  it provides, business investors would be left in
  the dark when it comes to the overall financial
  health of stock and bond issuers, and would be
  making their investment decisions, blind.
• Making lending decisions using financial
  accounting
• A vital tool for creditors, such as banks and
  bondholders, financial accounting outlines the
  companies assets along with short and long-term
  debt, and gives lenders a much clearer picture of
  how creditworthy they are. Derived in their
  entirety from the financial statements of a
  business, are some common accounting ratios used
  by creditors, such as the debt-to-equity D/E
  ratio and times interest earned ratio.

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• Meeting corporate obligations with financial
  accounting
• Businesses themselves can also make great use of
  financial accounting, to help them comply with
  all legal and regulatory obligations that have
  been outlined for public organizations. All date
  reported must be clear, accurate and regularly
  updated, and financial accounting practices help
  ensure this is always adhered to.
• Companies can also make the most of their
  day-to-day operations and identify projects that
  might have opportunities for growth in the
  future. Helping mangers to create budgets, track
  efficiency, analyze the performance of products
  and services and develop both long and short-term
  strategies, financial accounting is essential to
  the overall health of any business.

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• As such a vital aspect of any business
  providing an at-a-glance overview of its
  financial health through balance sheets and
  income statements among others businesses
  should never neglect their financial accounting,
  and if youre struggling to meet your financial
  accounting requirements, it might be time to seek
  help from a third party before your business
  begins to suffer.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami, Heyer Associates would be a right
  option.