Do you sometimes wonder how your business compares to other businesses in your industry? How can you determine what your business looks like in comparison with your competition? These questions can be answered by doing an RMA financial statement benchmark for your company through the Risk Management Association. This will in essence, help you determine the value of your business.
To do this, you will need to get the RMA Annual Statement Studies. This RMA Annual Statement Studies derives data from the financial statements of small to medium businesses in over 765 industries and from more than 200,000 statements of financial statements of financial institutions' borrowers and prospects. This site can help you get your data set up properly with the software provided here: http://www.valusource.com/Products/ProfessionalBusinessAppraisers/
ProductInfo.aspx?id=19. You will also need to purchase a copyright and license to use the data.
Once you enter your numbers and run the reports, you can use these reports to see how your company compares to others in your industry. You can also use them for prospective investors or when you are applying for a loan.
The RMA website has a section for answers to questions you may have in regards to understanding what it is, and what reports are included as well as other general questions It can be found here: http://www.rmahq.org/tools--publications/publications/annual-statement-studies/frequently-asked-questions-annual-statement-studies.
Copyright Jeanine Pfeiffer