In the athletic world financial statements are known as stat sheets. They basically give the reader an idea of how well the team or athlete is doing in its particular industry. Each stat sheet is unique to the individual being assessed but all of the stats conform to an industry standard so that one athlete can easily be compared to other athletes that do the same thing. The more complicated the game or athlete, the more complicated the stats are. For example, if you looked at a stat sheet for a soccer player you would probably find minutes played, shots, assists and goals. On the other hand if you looked at the stat sheet of a basketball player you would find all of the above plus columns for fouls, rebounds and free throws. These additional stats help the reader compare one basketball player to another but would be completely useless to a reader of a soccer players stats for these additional columns are for elements that are not found in the game of soccer. From either of these stat sheets the reader could make some determination as to the quality of these athletes in there respective sports but could do little to compare them to one another. And, if you understand those concepts then you can understand financial statements.
Financial statements are used by readers to compare one company to another especially within the same industry. They are the financial statistics of the individual company and they allow the reader to come to some determination as to the quality or strength of the company being assessed. As in sports different athletes have different strengths and therefore knowing what to look for aids in the evaluation. The same can be said for a reader of financial statements, one company might show a lot of assets accompanied by a lot of debt, while the next company might have fewer assets but little or no debt. At first glance some might say that the company that has more assets is better, but in reality the company with less debt might actually have the advantage in the industry in which it operates. But, that is not always true. Financial statements much like athletic stat sheets are just one way of evaluating a company and properly understood can be a powerful tool for growth and correction.
Here at Minniti & Company we strive to provide sound financial statements that adhere to the standards set forth by the accounting industry. The statements we provide can be used for internal evaluation on a monthly or quarterly basis or for external use on an annual basis to secure and satisfy bank loans and requirements of them.
In the aggressive marketplace that we all must operate in today we are faced with tough decisions that will have lasting impacts on the future success of our businesses. This competitive nature is no longer reserved for the blue suits of wall street but impacts small business daily in there attempt to compete with the corporate giants that have taken over the landscape. Just like the athlete wanting to improve their game or skills would go to the statistics that show the facts, so must a small business owner go to there financial statements to see where they can improve. Our goal here at Minniti & Company is to be that professional accounting firm that can provide you with the financial statements you can use to grow and succeed in today's market.