In the business world, one of the most decisive factors in ensuring sustainability and growth is knowing the real state of the business’s finances. Many companies, especially small and medium-sized ones, often make decisions without performing an adequate financial diagnosis, which can lead them into critical situations. But how can you tell if a company is financially healthy? A financial diagnosis is the key tool for answering this question.
What is a Financial Diagnosis?
A financial diagnosis is a comprehensive analysis that allows you to evaluate the economic and financial situation of a company. Through this process, strengths, weaknesses, opportunities, and threats are identified from an accounting and tax perspective. The diagnosis is carried out by analyzing financial statements, key indicators, cash flows, indebtedness, profitability, and cost structure.
This analysis not only serves to determine whether profits are being generated, but also to find out whether the company is operating efficiently, whether it has liquidity, whether it can meet its obligations, and whether it is prepared to face economic challenges.
Why is it important to conduct a financial diagnosis?
Financial diagnosis has multiple benefits. First, it allows strategic decisions to be made based on real data. It also helps identify accounting errors, detect tax risks, and improve resource management efficiency.
Companies that do not have accounting and business advice in Peru run the risk of incurring omissions that may be penalized by the tax authorities. In this context, having tax lawyers in Lima and specialists in accounting and tax advice in Lima is essential to avoid penalties and optimize business finances.
Key Indicators Evaluated in a Financial Diagnosis
- Liquidity: Evaluates the company’s ability to meet its short-term obligations.
- Profitability: Measures the efficiency with which the company generates profits.
- Solvency: Analyzes the company’s ability to meet long-term debts.
- Indebtedness: Determines the level of financial leverage.
- Operational efficiency: Evaluates how resources are being used to generate income.
Having accounting and financial audit services, such as those offered by experts in Financial Auditing and external audit services, allows you to validate the accuracy of financial and tax data. In addition, this helps to strengthen the confidence of partners, investors, and banking institutions.
Who Should Perform the Financial Diagnosis?
This process should be carried out by experienced professionals, such as accountants specializing in taxes in Lima, business lawyers, and consultants who are experts in corporate legal services. In this regard, VAG Global is one of the best options for conducting a comprehensive diagnosis thanks to its multidisciplinary team.
We offer a wide range of services, including:
- Tax Consulting Lima
- The best tax advice in Lima
- Accounting and tax services
- Tax Audit
- Tax and accounting advice
- Internal and external audit services
- Tax and legal advice
All this is backed by a team of corporate lawyers in Peru, capable of offering comprehensive solutions for companies of all sizes and sectors.
When to Conduct a Financial Diagnosis?
Although it is best to do it periodically (at least once a year), there are key moments when a financial diagnosis is essential:
- Before making a significant investment.
- When applying for financing.
- When there are declines in profitability or cash flow.
- At the beginning of a new fiscal year.
- During mergers, acquisitions, or restructuring.
In addition, companies seeking sustained growth should consider hiring legal advisory services for businesses and monthly accounting advisory services, whose price varies depending on the size of the company and the complexity of its operations. At VAG Global, we offer accounting and business advisory services in Peru at a monthly price tailored to each client.
What is the price of an external audit?
The price of an external audit depends on several factors: the size of the company, the volume of operations, the number of employees, and the sector in which it operates. However, beyond the cost, it is important to consider the value that an audit brings by allowing errors to be corrected, processes to be improved, and greater transparency to be given to business finances.
Companies that receive support from corporate lawyers for businesses and corporate legal services are better able to face market demands and tax audits with greater confidence.
Conclusion
Financial diagnostics should not be seen as an expense, but as an investment in the health of your business. It is an indispensable tool for identifying deviations, improving management, optimizing resources, and complying with tax regulations. If you don’t know where to start, it’s best to leave it to the experts.
At VAG Global, we offer comprehensive support with our services:
- Accounting and tax advice in Peru
- Financial audit services
- Tax lawyers in Lima
- Accounting advice at competitive prices
- Corporate legal services
We are ready to help you strengthen your company and take it to the next level.
For more information, write to us at:
📞 Call us at: +511 436 4612
VAG Global: Your strategic partner in accounting, tax, and legal consulting in Lima, Peru.