As you review financial reports, how do you know when to act? Here are some guidelines to help you make financial decisions.
- Are your expenses increasing?
If any expenses are increasing as a percentage of sales, it might be a sign that you are spending too much money in this area. For example, if office expenses go up, you might need to hold back on spending in this area.
- Are sales decreasing?
Sometimes sales just go down, at certain times of the year. If you see sales declining, and there is no reasonable explanation, you may need to investigate.
- Are liabilities increasing?
If you see that liabilities are increasing more than expected, you may want to investigate.
