One question we receive a lot at KCARD is how to begin looking at a business’s financial statements and learning from them so that you can make good decisions going forward. Right now, this topic is especially timely since we know a lot of folks who are calendar-year tax filers are putting together their documents to take to their tax preparer.
Finding the Dead Bodies in Financial Statements: What Happens When KCARD Meets CSI
We have a saying in KCARD when we are looking at financial statements or projections that come into our shop – “Did you find the dead body in them?” This is our little way of referring to the situation where we see a financial statement and instantly know that something is not quite right. A lot of times it is not on purpose. Instead, it is often where someone makes a mistake as they are developing the statement that can lead to the financial reports being inaccurate and the business owner not truly understanding the past or future financial performance and health of their business.