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  • Writer's pictureEd Patton

Parts and Pieces (of Business Financial Fundamentals)

Updated: Jul 13


Business’ financial components are numerous, complex and differ from company-to-company.

  • In other words, every company has a lot of financial pieces.

 

Many accounting and financial professionals are knowledgeable about all or most financial components / pieces.

  • While they understand the multitude of financial pieces, many do not put them together in a way that business leaders can grasp their companies’ full financial profile in a succinct and understandable manner.

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Advisors understandably focus on their particular area of expertise. This is important but often leaves out the vitally important insights derived from having a succinct and full financial profile in everyday language.

  • When complete financial fundamentals are provided in a succinct manner, leadership has their business’ ongoing full financial profile which improves the evaluation of results and strengthens strategic planning.

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Analogy


Think of a business’ traditional financial statements and supporting reports / schedules, etc as the pieces of a jigsaw puzzle.

 

Leaders are provided with lots of parts and pieces that, by themselves, do not provide a succinct and understandable full financial profile.

  • Putting these pieces together in a common sense manner provides a succinct and understandable full financial profile. 

 

One piece of the puzzle or multiple pieces of the puzzle dumped on the table from the box of pieces is not a clear and understandable picture. 

  • Clarity is provided when the pieces are properly put together.

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The clarity and simplicity of a completed jigsaw puzzles’ picture is fun and rewarding; similarly, providing leaders with their business' full financial profile is a fun and rewarding part of accounting and financial services. 

 

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The 5 Elements® of Financial Fundamentals via the Trender® Platform

 

Succinctly conveying a company’s complete financial profile requires the business’ financial fundamentals being:

  • Defined

  • Calculated

  • Summarized

  • Reported (in everyday language)

 

The Trender Platform leads this category. For years it has provided multiple businesses with their succinct and understandable financial fundamentals via the 5 Elements.

 

This category was developed to solve managements’ underserved needs of being provided with succinct and functional financial fundamentals that shows whether capital and time have been well spent; and which provides insights for making more informed and confident business decisions.

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Succinct and understandable financial fundamentals are a must-have for business leadership.

 

Companies need to have a succinct and understandable full financial profile because the financial fundamentals are just that – fundamental.

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The 5 Elements of financial fundamentals provided by the Trenders are as follows:

  1. Cash flow (proprietary to Trenders)

  2. Financial health (re, liquidity) (proprietary to Trenders)

  3. Shareholder values

  4. Borrowing capacity

  5. Operating earnings - summarized with trends 

 

Learn more by reaching out to:

 

Edward B. Patton

5701 Broadway, Suite 102

San Antonio, Texas 78209

Phone (210) 822-9977





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