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Understanding Your Financial Statement

By: Larry Kopsa
Posted: January 5, 2011, from the January 2011 issue of Skin Inc. magazine.

In any sport, as in business, you cannot be successful if you don’t know the score—and in business, your financial statement information is your scorecard.

When analyzing financial data, it is important to look at four different aspects: trends, comparisons to previous years, budgets and industry averages. Depending on the item analyzed, these details should be looked at monthly, weekly or even daily. So just what should you be examining?

Start with statistics from your business; many of these can be provided via your spa software.

These are just a few of the numerous items that you should look at when reviewing your financial data. If you are going to run a business, you have to know the score so that you can make adjustments and, in the end, win the game.