1. Balance sheet:
A balance sheet provides a snapshot of the organization's assets, liabilities and equity at any given time. It also allows a business to track changes in financial position over time by comparing different time periods.
2. Income statement:
An income statement summarizes an organization's revenues and expenses for a specific period of time. This helps businesses identify trends in their operations that could affect future performance.
3. Cash flow statement:
A cash flow statement tracks the sources and uses of cash during a given period of time. This helps management make decisions regarding investments, financing, and other cash-related activities.
4. Ratio analysis:
Ratio analysis is used to compare two or more different ratios from one financial statement to another. It helps identify trends in financial performance and can provide insights into the company's short-term and long-term financial health.
5. Trend analysis:
Trend analysis examines the changes in a company's financial position over time. This helps to identify any potential problems, as well as areas of strength or improvement that may be necessary.
6. Breakeven analysis:
Breakeven analysis is used to determine how much a business must sell in order to cover its expenses and make a profit. This tool can help businesses set realistic goals for sales and profitability, which can aid in effective management strategies.
7. Risk assessment:
Risk assessment evaluates the likelihood of specific events occurring that could have an impact on the organization's financial performance. Identifying these risks can help management develop strategies to mitigate or avoid them in order to protect the long-term financial health of the business.
8. Internal controls:
Internal controls are procedures and processes that are designed to ensure the accuracy, completeness, and validity of financial transactions. Having a strong system of internal controls can help avoid costly mistakes or fraudulent activity within an organization.
