Free Telephone
Consultation
Chicagoland area
(708) 870-5006 or cpaissa@sbcglobal.net
Hello and
welcome to my web site. I can
assist on a wide
range of
topics including
Quickbooks or Peachtree setup
Business
and personal taxes
401K and Pension
Tax planning
Financial
analysis
Cash flow projections and forecasts
Budgeting
Sales tax preparation
Business planning
Estate planning
Bookkeeping
Internal control analysis
Audit preparation
Payroll
services
Financial statements
Compilation of financial statements
IRS
research and representation before the IRS
Litigation support
If you are
looking for excellent service
with minimal cost,
then contact me by telephone, or e-mail. I come with a
commitment to customer service and can travel to you.
Financial
Ratios: A
Key to Understanding
the Numbers
In
today's economy, the
board of
directors, and stakeholders are trying
to gain a better understanding of their organization's financial
health. Among the many tools available for understanding an
organization's
financial statements is financial ratio analysis. Financial Ratios are
numerical measures of an organization's operations
and are divided into four categories: profitability, efficiency,
liquidity, and solvency.
Financial ratios can be used to track, forecast, and plan.
Therefore
you are on top of financial issues before they become problems.
Examples of Financial ratios include return on assets, net profit
margin, average accounts receivable collection, current ratio, and debt
ratio. There are many good books on the subject for your futher
research.
Words on the road to
financial
security!
1)Plan,
Plan, Plan---If
you
want to stay away from money problems, you need to have a plan of
action.
Ask yourself questions such as how much money did I save for a rainy
day
this month? Will I be getting that second job on the weekend to
supplement
my income? Where will I be 10 years from now and how will I get there?
How
is my long-term financial plan looking?
2)Debt is a killer, avoid it---I have heard many horror stories about
people living on check by check, then along comes credit card debt,
then more
debt,and lastly bankruptcy. Spending must be guided by a budget!
3)Research anything you do---Whether it is a stock, mutual fund, new
car, or anything for that matter, the fundamentals of the issue must be
researched. Making a rash decision is usually not a good idea.
4)Save whatever you can---Really every penny counts. The earlier you
start saving for the future, the longer the magic of compounding can
work.
Even if you can only afford to save $100.00 a month, this is a good
start in
the right direction. The sooner you start, the more you will see when
you retire.
5)Diversify your portfolio---As the old saying goes, "Don't put all
your eggs in one basket." You want to diversify your money among
different
asset classes. This would include stocks, bonds, real estate, CD's, and
so forth. Therefore, if one component of your portfolio isn't
performing
well, the other segments will be there as a cushion against the lagging
portion.
6)The "quality word" should ring strong---I can't fathom why money
would be invested in something other than quality. To risk money for a
few extra dollars that may show up isn't good logic. For instance, to
put
money into an internet stock like Amazon is questionable. Why not
instead
have a better sleep with an index mutual fund?
Something
to think about
A 35 year old man sets aside $50,000 in an investment paying 8%
annually. At 60
years old, that sum would have grown into $342,424!
Free Telephone Consultation
Chicagoland area
(708) 870-5006 or cpaissa@sbcglobal.net
Hello and
welcome to my web site. I can
assist on a wide
range of
topics including
If you are looking for excellent service with minimal cost, then contact me by telephone, or e-mail. I come with a commitment to customer service and can travel to you.
Financial
Ratios: A
Key to Understanding
the Numbers
In
today's economy, the
board of
directors, and stakeholders are trying
to gain a better understanding of their organization's financial
health. Among the many tools available for understanding an
organization's
financial statements is financial ratio analysis. Financial Ratios are
numerical measures of an organization's operations
and are divided into four categories: profitability, efficiency,
liquidity, and solvency.
Financial ratios can be used to track, forecast, and plan.
Therefore
you are on top of financial issues before they become problems.
Examples of Financial ratios include return on assets, net profit
margin, average accounts receivable collection, current ratio, and debt
ratio. There are many good books on the subject for your futher
research.
1)Plan,
Plan, Plan---If
you
want to stay away from money problems, you need to have a plan of
action.
Ask yourself questions such as how much money did I save for a rainy
day
this month? Will I be getting that second job on the weekend to
supplement
my income? Where will I be 10 years from now and how will I get there?
How
is my long-term financial plan looking?
2)Debt is a killer, avoid it---I have heard many horror stories about
people living on check by check, then along comes credit card debt,
then more
debt,and lastly bankruptcy. Spending must be guided by a budget!
3)Research anything you do---Whether it is a stock, mutual fund, new
car, or anything for that matter, the fundamentals of the issue must be
researched. Making a rash decision is usually not a good idea.
4)Save whatever you can---Really every penny counts. The earlier you
start saving for the future, the longer the magic of compounding can
work.
Even if you can only afford to save $100.00 a month, this is a good
start in
the right direction. The sooner you start, the more you will see when
you retire.
5)Diversify your portfolio---As the old saying goes, "Don't put all
your eggs in one basket." You want to diversify your money among
different
asset classes. This would include stocks, bonds, real estate, CD's, and
so forth. Therefore, if one component of your portfolio isn't
performing
well, the other segments will be there as a cushion against the lagging
portion.
6)The "quality word" should ring strong---I can't fathom why money
would be invested in something other than quality. To risk money for a
few extra dollars that may show up isn't good logic. For instance, to
put
money into an internet stock like Amazon is questionable. Why not
instead
have a better sleep with an index mutual fund?
Something
to think about
A 35 year old man sets aside $50,000 in an investment paying 8%
annually. At 60
years old, that sum would have grown into $342,424!
Copyright 2017 Fiaze
Issa, CPA. All rights reserved.
Reproduction
in whole or part is strictly
prohibited except by permission. LEGAL DISCLAIMER
This web site is intended to provide information of general interest to the public and isn't intended to offer legal or financial advice about any specific situation or problem. I don't purport to nor intend to create an accountant-client or consultant-client relationship by offering this information. Neither the review of this information nor the content of any e-mail sent to myself shall create such a relationship. Thank you.