Comparative Statements - R J Brennan, CPA

Why comparative statements?

Financial statements with only one column of figures can tell us a great deal. However if we add more columns - at least 3 for trends - we can learn more.

We can compare:
- this month to this month last year
- this month to last month
- this month to the last number of months
- this year to date to last year to date
- this year to date to last year
- this month and year to date to budgeted amounts
- this year projected to budget for year
- this year to date to industry averages

Including columns for percentage of assets on the balance sheets and percentage of revenue on the income statements makes trend analysis easier. Trends in the statements and their impact can help highlight problems and opportunities.