The structure of the balance of payments in the analysis reflects the composition of the property of the enterprise and its financial sources. From the point of view of management, the analysis provides information with which to characterize the company's procurement and marketing policy , the conditions for the enterprise to interact with consumers and suppliers.
The balance assessment begins with a description of the amount of all the property of the company, as well as with the dynamics of its change over the period under review. As a result, in this part, the sources of raising or reducing assets should be identified and the articles should be identified in accordance with which the changes occurred.
The structure of the balance sheet, as mentioned above, includes liabilities and assets. The ability to read the reporting document means knowing what is contained in each article, how to evaluate the information, what is the role of each article in the organization’s activities and the relationship with other provisions.
The balance structure allows you to obtain a significant amount of information about the company, to establish the level of security of the company with its own working resources, to determine which articles have influenced the change in the value of working capital, and also to give a preliminary assessment of the general financial condition of the company.
The reporting document is a real means of communication. Thanks to him, company leaders get an idea of their position in the system of similar organizations, the correctness of their chosen strategic course, and the effectiveness of the use of resources. In addition, the balance structure allows you to evaluate the effectiveness of decisions made regarding a wide variety of management issues.
At the same time, by analyzing the composition of the reporting document, auditors are able to more clearly plan their audit, find the most effective approach in identifying weaknesses in the accounting system, as well as areas of likely unintentional and intentional errors in external reporting.
The balance sheet structure allows analysts to determine the direction in which financial analysis will be carried out.
The asset includes articles combining specific components that comprise the company's property in accordance with a functional attribute.
Depending on the period of use, the assets are divided into permanent or non-current. These resources have been acquired for continued use. These include fixed assets, financial investments for a long period and so on.
In addition, assets may be current or current. These resources are intended for use throughout the standard production cycle or year.
In the Russian Federation, it is customary to build an asset in accordance with an increase in the liquidity of funds, that is, in order to increase the speed at which assets are converted into monetary form over the course of an economic turnover.
Liabilities are presented in the form of equity and borrowed capital. The first includes statutory and additional funds. Additional capital is the accumulated profit (distributed and undistributed). Borrowed funds are divided into long-term (more than a year) and short-term (less than a year) obligations.
The balance sheet structure must comply with the basic principle of accounting - the equality of liabilities and assets.
Analysis of the reporting document performs a number of important tasks. So, the balance allows you to assess the profitability of capital, financial stability, solvency of the enterprise. Along with this, the degree of effectiveness of the allocation of funds of the enterprise, their sufficiency for the implementation of current and future business activities, as well as the size and composition of borrowed sources, and the effectiveness of their attraction are evaluated.