Relevance means that this information is significant and has impact on the decision made by the user. Information is considered also pertinent if it provides possibility of the perspective and retrospective analysis.
The purpose of the second stage - acquaintance with the explanatory note to balance. It is necessary to estimate working conditions in the reporting period, to define tendencies of the main indicators of activity, and also high-quality changes in a property and financial position of an economic entity.
In this work the analysis of financial activity of Aleksandrovsky RUSSIAN is carried out. This manufacturing enterprise which is engaged in communication rendering of services. Now about 170 people work at the enterprise.
The main requirement to information provided in the reporting consists in that it was useful to users i.e. that this information could be used for adoption of reasonable business decisions. To be useful, information has to answer the corresponding criteria:
The movement of any TMTs, labor and material resources is followed by education and an expenditure of money therefore the financial condition of an economic entity reflects all parties of its production and trade activity. I.T. Balabanov suggests to carry out the characteristic of a financial state according to the following scheme:
coefficients of business activity or efficiency of use of resources (turnover of assets, turnover of receivables, turnover financially - production stocks and duration operational a cycle;
Users of information are various, the purposes of their konkurentna, and is frequent and are opposite. Classification of users of accounting reports to be executed in various ways, however, as a rule, allocate three integrated their groups: users, external in relation to the concrete enterprise; the enterprises (the administrative personnel is more exact than them); accountants.
The financial analysis is an essential element of financial management and audit. Practically all users of financial reports of the enterprises use results of the financial analysis for decision-making on optimization of the interests.
The basic (and in some cases and the only thing) a source of information on financial activity of the business partner are accounting reports which became public. The reporting of the enterprise in market economy is based on synthesis of data of the financial account and is the information link connecting the enterprise with society and business partners - users of information on activity of the enterprise.
The financial analysis is part of the general, full analysis of economic activity which consists of two closely interconnected sections: financial analysis and production administrative analysis.
The purpose of the first stage - to make the decision on expediency of the analysis of financial statements and to be convinced of its readiness for reading. Here a visual and elementary calculating inspection of the reporting on formal grounds and in essence is carried out: existence of all necessary forms and appendices, requisites and signatures is defined, correctness and clarity of all forms of account is checked; the balance sheet total and all intermediate results are checked.
V. V. suggests to carry out the express analysis of a financial state on above to the stated technique. The express analysis can come to the end with a conclusion about expediency or need of more profound and detailed analysis of financial results and a financial position.
The main contents of the intraeconomic financial analysis can be added and other aspects important for optimization of management, for example such as the analysis of efficiency of advancing of the capital, the analysis of interrelation of costs, a turn and profit.
Division of the analysis into the financial and administrative is caused by the division of system of accounting which developed in practice on the scale of the enterprise on the financial account and management accounting. Such division of the analysis a little conditionally because the internal analysis can be considered as continuation of the external analysis and vice versa. In interests of business both types of the analysis feed each other with information.