The accountant of any organization is often faced with the need to draw up financial analysis, although this can also be done by an ordinary specialist in the financial or economic department. Drawing up a financial analysis enables the company's management to assess the effectiveness of management. A detailed financial analysis is carried out when changing a financial or general director or buying and selling an organization.
It is necessary
Financial performance of the organization
Instructions
Step 1
Large enterprises have entire departments that deal with financial analysis. Small firms invite an economist from an audit company to compile an analysis. This procedure usually takes no more than 2-3 days.
Step 2
Financial analysis requires reporting of various forms, but the basis, of course, is accounting data. The balance sheet of the enterprise makes it possible to assess the sufficiency of economic activity, the efficiency of capital allocation and the structure of borrowed sources.
Step 3
First you need to analyze the structure of assets and liabilities of the balance sheet. For this, items of assets are grouped according to the level of liquidity, current and non-current assets. The liability is grouped according to the degree of urgency and sources of occurrence. Current and non-current assets are located in sections 1 and 2 of the balance sheet, own sources in section 4, section 5 and 6 shows the capital raised.
Step 4
The budgetary debt of the enterprise is reflected in lines 625 and 626 of the balance sheet. In line 610, you can see short-term loans. Lines 621, 622 and 628 show debts to creditors. 623 and 624 lines contain short-term debt and 510 long-term debt.
Step 5
Now it is worth looking at the balances of highly liquid assets - line 260, medium-liquid assets - line 240, low-liquid assets - line 210.
Different groups of assets are converted into monetary form and can be used to pay off debts.
Step 6
After all the items are grouped, you need to find the dynamics of changes in the current assets of assets and liabilities. Then check whether there have been changes in the sections of the balance sheet, and identify the reasons. Particular attention should be paid to working capital: the growth of accounts receivable, the level of stocks, sales of finished products.
Step 7
In the form 2 and 3 of the balance sheet, the cash flows of the enterprise are displayed. In order to determine the amount of revenue, it is necessary to subtract data from the same line, but at the beginning of the period, from the data at the end of the period located in line 10 in form 2.
Step 8
Since the revenue is formed from the netting of cash receipts, it is necessary to calculate the actual amount on the accounts. These data are taken from form 4 balance sheet. To see the full financial turnovers, you need to summarize line 30 with 50 and 90. These data will be regular receipts.
Step 9
The seasonality of cash inflows can be seen by comparing data from several quarters. In order to see the capabilities of the enterprise, it is necessary to compare data on groups of assets, combined by the degree of liquidity.
