Running a business is not just about making sales or balancing the books — it’s about continually evaluating your performance, identifying improvement areas, and planning ahead with clarity and confidence.
At Xigma Accountants, we help business owners step back and look at their business from a broader, strategic perspective. One of the most effective ways to do this is by assessing historical data, reviewing current financials, and forecasting future performance.
Start with a Financial Review
A great starting point for business evaluation is reviewing your historical financial performance and comparing it with your current financial statements and budget forecasts.
This comparative analysis gives you insight into financial trends, patterns, and potential red flags. More importantly, it offers a vision for your business’s future direction, helping you make informed, proactive decisions rather than reactive ones.
Six Key Areas We Focus On
When evaluating a business, we focus on six critical areas that influence overall performance, sustainability, and profitability. These pillars are interconnected and provide a clear framework for improvement:
1. Profitability
- Are your margins healthy?
- Is your business generating consistent profits?
- What are your high-cost areas, and how can you reduce them?
2. Cash Flow, Liquidity, Debt & Solvency
- Is your cash flow sufficient to meet daily operations?
- Can you comfortably cover debts and liabilities?
- Are you balancing income vs expenses efficiently?
3. Efficiency
- Are your systems and processes streamlined?
- Is your business using resources (time, staff, inventory, etc.) effectively?
- Where can technology or automation improve performance?
4. Business Planning (Financial & Operational)
- Do you have a clear, documented business plan?
- Is your financial forecasting aligned with your operational goals?
- Are you budgeting and tracking regularly?
5. External Issues and Market Trends
- Are you aware of changing market conditions or regulatory updates?
- How do economic, social, or technological shifts impact your business?
- Are you prepared for disruption or innovation in your industry?
6. Assets & Intellectual Property
- Are your tangible and intangible assets properly valued and protected?
- Do you have systems in place to track and manage them?
- Have you considered IP strategy as part of your business growth plan?
Each Area Is Interlinked
It’s important to remember that none of these areas operates in isolation. Profitability affects cash flow; planning influences efficiency; external trends impact operations. That’s why we take a holistic approach to business evaluation, giving you a well-rounded strategy for long-term success.
Want to Know How Your Business Measures Up?
Our advisory services include detailed business reviews, financial diagnostics, benchmarking, and tailored planning sessions to help you understand where you stand and how to move forward.
Evaluate today. Improve tomorrow. Grow sustainably.