Notes from the President

Ken Hilton - President Red Wing Software

Unless you live in a bubble (which I am sure it has felt like the last few months), you know it has been cold in most of the country the last few days. It is interesting how all things are relative to some perceived standard. As I write this, it is thirty-nine degrees in MN and feels like summer. Last fall, when it was thirty-nine degrees, it felt like the middle of winter.
If you are in a seasonal business, the year’s busy times can feel like you are on an unstoppable roll, and the slow times of the year can feel like things are bad and can’t get any worse. That is when you need to step back and take a high-level look at the business and get the perspective on where the business truly is and when it will get better.
Doing some trend analysis over several years can give you a clearer picture of where you have been and the long-term direction of the company. You can accomplish this using the multi-year balance sheets, cash flows, and income statements available in your accounting software. Using the optional Ratio Analysis in CenterPoint® Accounting will give you a great visual trend of many financial indicators.
Whatever method you choose to get perspective on the business, it is important to make decisions based on all available information.
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