In some of my earlier blog posts I presented information to assist with financial accounting for small and medium-sized businesses that included an explanation of financial ratios and possible accounting software programs that can be utilized.
Using the tools mentioned in the earlier blogs, let’s move further by accessing and manipulating the free data that is available related to your business. Free data you say? Well, yes in a matter of speaking the data is free; however, this data is collected by the government and funded by you. This data, held in the most extensive database of commerce and demographic data of the United States, can be instrumental in helping you make informed business decisions.
For the history buff, the United States government began collecting soon after the U.S. Constitution was adopted (1790). All at your beck and call. Here is a useful link: https://www.census.gov/ces/dataproducts/datasets/lbd.html.
Over the next several blog posts I will construct a table with the financial statements of a test business and use that table to gather demographic date to define the business and its environment. The next step will be to gather statistics to compare to our target. This will lead to ratio analysis using the ratios I wrote about earlier.