The Six Ways a Manager Uses Financial Statements In Decision-Making Process

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The Six Ways a Manager Uses Financial Statements In Decision-Making Process Once you’ve been working in your new position as a manager for a few months, the company’s financial statements will be distributed to you at the end of each month. While many people just read over these documents and do not know what to do with them, financial statements can be precious tools if you understand how to use them properly.

Here are the six ways that a manager uses financial statements to run his or her department more effectively.

1) Forecasting Forecasting is an integral part of management accounting. Managers use forecasts to estimate business performance, gauge cash flow and decide on what kind of inventory and staffing needs they’ll have in the


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