Analysis of the financial results of the enterprise: goals, methods

Control, of course, is an important component of the work to ensure the activities of any organization. It can take on many different forms, each of which has its own characteristics and specifics. Control may be ongoing when carried out in the course of an activity. It is also based on data that is summed up over a certain time period. In this case, the first thing they remember about the analysis of the financial results of the enterprise / organization. This is what we’ll talk about.

general information

Analysis of the financial results of the enterprise is a calculation, interpretation and evaluation of a set of indicators that characterize various aspects of the functioning of a commercial organization. Of the greatest importance are two components. These are the physical indicators of production and cash flows of the organization. If one of them is ignored, then the real state of affairs will be underestimated, which will lead to an error in the plans and managerial actions being taken. And as a natural result - significant losses. But they can be prevented by regularly analyzing the organization’s ongoing activities in a quality and adequate manner. Indeed, in this case, it is easy to ensure management literacy, and as a natural result - effective functioning and development.

What is the purpose of the analysis of the financial results of the company? This is obtaining a small number of the most informative (key) parameters that allow you to compile an accurate and objective picture of the state of the organization, evaluate its profits and losses, changes in the structure of liabilities and assets. Moreover, interest can be provided by both the current position and the projection onto the near or somewhat distant future.

More specifically, goals are affected by the tasks of analyzing the financial results of an enterprise. In essence, this is a concretization, which takes into account organizational, technical, methodological and informational capabilities and needs. The main factor in this case is the volume and quality of the data. One important point to keep in mind here! Namely, the fact that financial and accounting statements are simply raw information that needs to be processed. In this case, the path of action is chosen by the specialist engaged in analysis and task-oriented.

About HR Moments and Decisions Used

Typically, financial policies are adjusted by senior management and / or owners. Therefore, all data processing is primarily needed for internal data. After all, an analysis of managing the financial results of an enterprise should help to choose the most optimal ways to stabilize and improve the position of a commercial structure. This is achieved thanks to various measures that contribute to optimizing the state of the organization. With a change in the micro- and macroeconomic environment, they need to be reviewed. But with what? And in this case, a technique is used to analyze the financial results of the enterprise.

How? Initially, a system of relative indicators is needed , which is calculated using available data. This is enough to have an accurate picture of the organization’s position. Having studied the dynamics of change, you can determine the development trend and make a definite decision.

What needs attention? The form and contents of the balance sheet, profit and loss statements and other documents and necessary applications. They should be studied sequentially so that a clear picture is gradually formed.

It is common practice when two years are taken into account - the reporting and the previous ones. If the data is not comparable, then they need to be processed, an adjustment should be made for further use. But in this case, it is necessary to add an explanatory note, which will indicate the reasons that caused the changes. The various components must be interconnected and reflect different aspects of some facts from the economic life of the enterprise.

All received data is structured in a convenient form and transmitted for management decision making. On this analysis of indicators of financial results of the company is considered complete.

Who needs all this information?

Let's look in more detail for what purpose the data is transmitted to different groups of people:

1. Investors They invest in the company their own capital to obtain a certain level of income. This is accompanied by risk. And in order to have an idea of ​​the structure and position of the organization, they want to regularly get acquainted with the data of financial analysis.
2. Lenders. These are people or (more often) an organization that temporarily provides a loan on the basis of a certain income in the form of interest. And they are interested in information that will allow us to judge whether the company will be able to make all the necessary payments on time.
3. Organization management. All these data are necessary for them to assess the effectiveness of the management.
4. The employees of the organization. They are interested in information that relates to the timely payment of wages, pension and other payments.
5. Suppliers. Their interest is fueled by the question of whether all necessary and due sums will be paid.
6. Consumers. They see the financial viability of the organization as a guarantee of supply stability.
7. State and public organizations. They are interested in the financial health of individual links in the economic system and in general.

When all of them make economic decisions, the analysis of the financial results and the effectiveness of the enterprise allows us to judge the nature of the internal organization and effectiveness. The final indicator is the profit of a commercial structure. In a market economy, it acts as the most important incentive for ongoing activities, and also creates the basis for expansion. The amount of profit depends on the sales volume, assortment, its quality, level of costs, information processes and taxes. Everyone is interested in the best possible scenario.

A few words about profit

Each commercial structure is interested in a steady increase in profits. Alas, reality often goes against desires. But it’s quite possible to increase the size and the chance of an increase in indicators. What role does the analysis of the financial condition and results of the enterprise play in this? Let's talk about everything in order.

Conventionally, two main groups of indicators can be distinguished: absolute and relative. In the first case, these are the results of sales, ordinary activities and other operations. The indicator of net profit is important here - that is, income that remains at the disposal of the commercial structure after taxes have been paid. Relative indicators include everything that allows you to evaluate profitability. How does the analysis of financial results relate here? The fact is that he:

1. Conducts an assessment of changes for each specific indicator for a specific selected period.
2. Allows you to organize in a structural representation all the data and track their dynamics.
3. Reveals all changes for the selected periods.
4. Establishes the degree of influence of individual factors on the amount of profit received, as well as the reasons that led to them.

From all this, you can specify the main tasks:

1. Assessment of the dynamics and level of relative and absolute indicators of financial results. Primarily interested in profitability and profit.
2. The study of the structure of income.
3. Determining the degree of influence of various factors on the size of profit and profitability.
4. Studying the distribution, direction and use of enterprise income.
5. Analysis of relative indicators in order to search for a threshold of profitability.
6. Search for possible reserves and ways to mobilize them.

We work with accounting information

Of greatest interest is the form No. 2, which is called the “Profit and Loss Statement". Information obtained from it serves as the basis for all work. In addition, the data contained in forms No. 1, 3, 5, 11 and magazine orders No. 10, 11, 15 may be additionally involved. Also, do not forget about the information contained in the business plan and analytical accounting, namely accounts 90, 91 and 99. The data presented here should be more than enough.

In addition, it is necessary to take into account the accounting policy carried out at the enterprise. Indeed, the possibility of performing maneuvers in the distribution of costs between work in progress and finished products depends on this. The creation of valuation reserves, write-offs of deferred expenses - all this must be taken into account. What issues should be given initial attention? You can recommend thinking about:

1. Methods for calculating depreciation on fixed assets and tangible assets, evaluating them when they are put into production and assigning certain types of expenses to the cost of products created (reservation).
2. Formation of the composition of overhead costs, as well as their distribution.

In this case, it is necessary to separately consider such concepts as economic and accounting profit. In the first case, the amount of income that is forecasted or expected is assumed. Whereas accounting profit is actually received and reflected in the registers funds for a certain period. Analysis of the formation of the financial results of the enterprise without these concepts can not do. But mixing them is not a desirable option. Indeed, in this case, a qualitative assessment of the activity will not work.

What and how in reality?

An article would be incomplete if it were not for an analysis of the financial results of an enterprise using an example. Therefore, let's look at what and how. Suppose we have a need to evaluate the dynamics of retained earnings. What will be of interest to us? In the analysis it is necessary to obtain the following profit indicators:

1. Balance sheet.
2. From the sale of services, works and products.
3. Taxable.
4. From other implementations.
5. Clean.
6. Non-operating results.

Carrying profit is that part of the income that is the basis for calculating taxes that must be paid to the budget. All that remains is the net earnings of the enterprise. Accounting and analysis of the financial results of the enterprise involves determining the composition, structure, dynamics and implementation of the plan for the analyzed period.

And what is our task? Find the dynamics. In this case, the comparison method is suitable when the indicators of the reporting period and the previous one are used. In this case, it is necessary to take into account the influence of inflationary processes. To compare indicators, you can use the recalculation of the price index. In addition, a large number of factors affect the amount of retained earnings. This is the profit from sales activities and other financial results, which are affected by the volume, structure, cost and prices of products, works and services. To establish the relationship between them, an additive factor model is used.

But what if it is necessary to analyze and evaluate the financial results of the company from a slightly different perspective? For example, assess the degree of influence of factors? In such cases, valuable substitution methods or absolute differences can help. If the company creates heterogeneous types of products, then it is additionally necessary to take into account the structural factor.

About the impact, costs and profits

A change in socio-economic development during the transition to market relations has led to qualitative shifts in production. This led to an increase in cash accumulation, as well as an increase in profits of various forms of ownership. The most important factors in this are:

• increase in the volume of created and sold products,
• increase in labor productivity,
• introduction of scientific and technological developments,
• cost reduction and improving the quality of created goods.

Profit growth is possible with a reduction in spending and an increase in the size of activities. All this affects the financial result, which is investigated. It should be borne in mind that it is formed from natural resources and raw materials, basic and auxiliary materials, energy, labor, fixed assets and other expenses. Their composition and structure depend on the conditions and nature of production, the form of ownership, the ratio of various positions. All this should take into account the analysis of the financial and economic results of the economic activity of the enterprise. To simplify the indicators, you can combine them into five groups:

1. Material costs.
2. Deductions for social needs.
3. Labor costs.
4. Depreciation of fixed assets.
5. Other costs.

But all of them are made only for profit. It is the final financial result. And it directly depends on the volume. But do not forget about the qualitative aspect and the level of prices applied. Analysis of the results of the financial and economic activities of the enterprise allows us to assess how good a policy has been chosen. But at the same time, it is necessary to look at small nuances - for example, to separate revenue from sales. That is, the products can be shipped today, and payment will come in a week. If everything is within the same period under consideration (for example, a month), then this can be ignored. But if you shipped in March, and payment in April? In this case, you need to strain a little.

Separate nuances of cost, profitability and costs

When analyzing the financial results of the main activities of the enterprise, these two points are one of the most important. And at the same time they are very unstable. What does it mean? Here, for example, the cost of revenue is significantly affected by the cost. You should also remember about the costs, because from this point of view they can be variable and constant. In order to better prepare the data, it is recommended to organize management accounting, in which they will be highlighted.

The advantage of this approach is high integration, opportunities for analysis and decision making. And as an end result - you can quickly and flexibly respond to all emerging challenges. After all, the management is interested in not leaving the market in the competition and getting the maximum profit. And profitability serves this business. Everything is simple with her - the higher her indicator, the better. The question is how to achieve it. A whole set of factors has its level and dynamics:

1. The level of organization of management and production.
2. The structure of capital and sources of its receipt.
3. The degree of resource use in production processes.
4. The quality, structure and volume of the created product.
5. Cost of products and production costs.
6. Profit by type of activity.

Remember, fixed and variable costs were mentioned before, although they were not given due attention? It's time to fix it. The constant costs include those whose value does not change with fluctuations in quantitative indicators during the sale of products. An example is:

1. Depreciation of fixed assets.
2. Depreciation of intangible assets.
3. Rent.
4. Costs of a capital nature.
5. Depreciation of fragile and low-value items, as well as the costs of maintaining premises and buildings.
6. Training costs.

Variable costs vary depending on revenue. Examples:

1. Fare.
2. Purchase of raw materials.
3. Salary.
4. Electricity, gas and fuel.
5. Container and packaging.
6. Contributions to funds.

How to increase profits using reserves?

Analysis of the financial and economic results of the enterprise should provide a subsequent increase in turnover and profitability. One of the most effective ways to achieve this is through reserves. How to achieve this? There are three main areas:

1. The increase in sales.
2. Price increase.
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Conclusion

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In the right hands and with a smart head, it significantly increases the survival of the enterprise in a competitive environment, turning into a reliable foundation for future years of development and prosperity of the enterprise. Fortunately, there are quite a lot of specialists in this area, so you can find a skilled person in whose hands the work will argue.