If you were the head of a new company and you were to oversee the accounting department what type of financial

Question

reports would you expect to see and how would you use the reports available to you to make business decisions?

Answer 1

I would want to see frequent reports on productivity and liquidity (cash + AR - AP), in addition to the standard income statement/balance sheets at the end of each month.

I would use the productivity report to spot and correct any problems with the production process, and to help me have some expectations for future cash flow problems arising from slow weeks.  Analyzing the trends in the liquidity report can give me a preview of what my profit may be at month end, and will also help me identify coming cash flow issues and problems with operations.

Answer 2

profitability analysis