Leaders in any organization need to understand the cost of doing business. Financial documents are used to explain how money is used in a business and can be interpreted to predict an organization's success. The ethical and effective use of financial statements and ratio calculations for forecasting and budget preparation can ensure investments or withdrawals within an organization will produce a healthy return or mitigate decline in other areas. Knowing the processes for assessing ROI, creating a budget and anticipating variances are critical in any organization in order to make effective decisions.
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