ABSTRACT
Monitoring the financial performance of an entrepreneurial business can take many forms; however, all methods for monitoring financial performance use some standard to compare and evaluate actual financial performance. Developing a system for tracking and monitoring these assumptions is the first step in effective financial management in an entrepreneurial business. Setting milestones keeps the entrepreneurs focus on what is critically important in the growth of a business. Medical products inc. is turning over or selling its inventory four times a year or once every three months. Liquidity ratios are used to measure a company's short-term ability to pay maturing obligations. Entrepreneurs typically work with two types of accountants, internal and external. The internal accountants prepare the financial statements but should also be able to provide managerial analysis of the operating trends for management. Professional accountants are trained to follow certain procedures in keeping a company's financial records.
