Business owners make financial decisions every day. Understanding revenue, expenses, profitability and cash flow can make it easier to evaluate those decisions and plan for what comes next.

Sharma Davis Madan & Co. (SDM CPAs) provides financial advisory and business financial guidance for clients in San Ramon, California, and throughout the surrounding Tri-Valley area.

SDM CPAs is based in nearby Pleasanton and has provided accounting, tax and related professional services since 2002.

Financial advisory services can be coordinated with accounting, bookkeeping and tax services when appropriate. The specific services provided depend on the client's needs and professional engagement.

Accounting records contain information that can help explain how a business is performing.

Important financial measures may include:

• Revenue
• Gross profit
• Operating expenses
• Net income
• Cash
• Accounts receivable
• Accounts payable
• Assets
• Liabilities

Looking at these numbers over time can reveal trends that may not be obvious from a single month or year.

For example, increasing sales may look positive, but profitability may not improve if expenses are increasing at a faster rate.

Financial analysis can help business owners look at these relationships in the context of their company's operations.

Growth can create new financial requirements.

A business considering expansion may need to evaluate:

• New employees
• Payroll costs
• Equipment
• Inventory
• Marketing
• Additional facilities
• Working capital
• Expected revenue
• Operating expenses

Before committing to a growth plan, owners may want to understand how additional costs could affect cash flow and profitability.

Financial advisory support can help organize the financial information relevant to that discussion.

Small business owners often manage many areas of their companies themselves.

They may handle operations, employees, sales, customers, accounting and taxes while also making important financial decisions.

Advisory support may be useful when:

• Revenue is changing
• Expenses are increasing
• Cash flow is difficult to predict
• The business is expanding
• A major purchase is being considered
• Financial reports are difficult to understand
• The owner wants a clearer view of financial performance

The appropriate level of support depends on the business.

Financial advisory work depends on reliable accounting information.

If records are incomplete or outdated, it can be difficult to evaluate business performance accurately.

A practical relationship is:

Bookkeeping → Accounting → Financial Reporting → Financial Analysis → Business Decisions

SDM CPAs provides accounting, bookkeeping and financial advisory services, allowing these areas to be coordinated when appropriate.

Tax considerations can be relevant to many business decisions.

For example, a business owner may want to consider tax issues when:

• Purchasing significant assets
• Changing business ownership
• Expanding operations
• Changing business structure
• Experiencing a significant change in income
• Making another major financial transaction

Tax planning should be considered alongside the broader financial circumstances of the business.

SDM CPAs also provides tax preparation, tax planning and tax consulting services.

Financial information can be especially useful before making a significant business decision.

Hiring Employees
An owner may want to understand the expected effect of salaries, payroll costs and other employee-related expenses.

Purchasing Equipment
A major purchase can affect available cash, financing and future operating expenses.

Expanding Operations
Expansion may require additional employees, equipment, inventory, facilities and working capital.

Opening a New Location
A new location can create additional upfront and ongoing costs that should be considered alongside expected revenue.

Changing Ownership
Ownership changes can involve financial and tax considerations that depend on the specific circumstances.

Professional guidance should be based on the actual facts and financial information involved.

Financial advisory and business advisory can overlap.

Financial advisory generally focuses on financial information, analysis, planning and financial decision-making.

Business advisory can address broader business questions while considering financial information as part of the analysis.

SDM CPAs provides accounting and business advisory services that can be coordinated with financial analysis when appropriate.

When choosing a financial or business advisor, owners should consider:

• Accounting expertise
• Tax knowledge
• Financial reporting experience
• Understanding of business finances
• Communication
• Range of professional services
• Ability to work with current financial records

Sharma Davis Madan & Co. was established in 2002 and provides accounting, bookkeeping, tax, payroll and business advisory services.

This combination allows financial questions to be considered alongside related accounting and tax information when appropriate.

There is no single point at which every business needs financial advisory support.

A business may consider it when:

• Revenue is changing significantly
• Expenses are increasing
• Cash flow is difficult to predict
• The company is expanding
• Financial reports are difficult to interpret
• A major purchase is being considered
• The owner is evaluating an important financial decision
• The business needs better financial planning

The appropriate service depends on the company's circumstances.

Business owners and individuals can also explore:

Payroll Services & Processing in San Ramon, CA

CPA & Tax Services in San Ramon, CA

Accounting & Bookkeeping Services in San Ramon, CA

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