1、 Introduction
Financial analysis is to sort, integrate and process the data to form the financial analysis report of the enterprise by virtue of the accounting data and corresponding financial statements of the enterprise in a certain period, through the analysis method of the financial professional system and in combination with the production and operation of the enterprise. The purpose of financial analysis is to analyze the current operation and management of the enterprise, disclose the problems and risks existing in the operation process, help the decision-makers of the enterprise to clearly grasp the current operation status and financial situation, appropriately predict the development trend of the enterprise, and clarify the strategic direction. Therefore, in the enterprise financial management, financial analysis is a very important component, a key basis for evaluating the current business performance, financial situation and development trend of the enterprise, and an important way to achieve the goal of financial management. It is very important for the development of enterprises to accurately and efficiently collect the business management information and financial data of enterprises and make scientific and systematic financial analysis on them. The management decision-making level of the enterprise should promote the financial analysis work to a strategic height, use the financial analysis report, give play to the function of financial management supervision and guidance of operation management, so that the sustainable and healthy development of the enterprise can have a solid financial management foundation.
2、 The Importance of Enterprise Financial Analysis
1. Financial analysis is an important basis for evaluating an enterprise's financial status and operating performance
Through the deconstruction, conversion and analysis of the enterprise's balance sheet, income statement, cash flow statement and other major reports, such as the analysis of the quantitative relationship and structural status of assets and liabilities, the reasons for and realization of changes in profits, as well as the relationship between the cash flows generated by operating activities, investment activities and financing activities and the enterprise's profitability, we can provide specific reference data for enterprise managers, It is helpful for the management and decision-making level to further grasp the current business status, profit model and solvency of the enterprise, and predict the size of risk and income level. It is also conducive to evaluating the business performance of the enterprise, so that managers can find out the weak links of the enterprise in time, take corresponding remedial measures, and improve the economic efficiency of the enterprise.
2. Financial analysis is an important tool for enterprises to make correct business decisions
With the continuous development of the market economy, the business type of enterprises has gradually changed to diversification. Financial analysis is used to classify, summarize, sort out, and calculate the business data and financial data occurred in the production and operation process of an enterprise, and compare the enterprise's data in the same period of previous years vertically and the industry's data horizontally. Such financial analysis is helpful for enterprise managers to clearly understand the advantages and disadvantages of the enterprise in a timely manner, judge the opportunities and threats faced by the enterprise, so as to make better business decisions and investment plans, and finally achieve the business strategic objectives of the enterprise.
3. Financial analysis can control and supervise enterprise operation
Financial analysis can judge the standardization degree of basic financial accounting work of enterprises by analyzing various financial statement data and their changes; Through the analysis of budget implementation, the differences between enterprise operation and management and budget control objectives can be grasped; Through the calculation and analysis of various financial indicators, we can control the effectiveness of enterprise operation and management. The authentic and reliable financial analysis makes up for and improves the loopholes in the financial information disclosed by the enterprise to the outside world, ensures the authenticity and effectiveness of the implementation results of the financial control and supervision objectives, and provides strong data support for improving the production, operation and management efficiency of the enterprise and improving the operating efficiency of the enterprise.
4. Financial analysis can provide action direction for enterprise development
Financial analysis can reveal the current financial situation and operating results of the enterprise in a multi-dimensional way by comparing the financial data indicators and actual business operation data of the enterprise. In particular, from some major events occurring in the enterprise, such as contingencies, mergers and acquisitions, capital raising investments, major adjustments, etc., it can judge the sales development prospects, industry advantages and potential risks of the enterprise, so as to predict the future development trend of the enterprise, It is helpful for business managers to quickly position their business advantages, adjust their business strategies, strengthen risk control, clarify the direction of action, and take corresponding measures in time to improve economic efficiency.
3、 Main problems in enterprise financial analysis
1. Insufficient understanding and attention to financial analysis
The degree of attention paid to financial analysis by the management decision-making level of an enterprise directly determines whether the financial analysis can be effectively implemented and promoted, and even affects the effectiveness of financial analysis.
First of all, most of the management decision makers of enterprises lack modern business management concepts such as strategy and risk management, budget and performance management. They only focus on the increase and decrease of sales and profit margins, but fail to realize the importance of financial analysis to improve the level of enterprise management, which makes it difficult for financial analysis to play its key role in financial management.
The second is the financial management, which focuses on the book situation and is only satisfied with the accounting work. The financial analysis work stays at the simple analysis level to meet the requirements of the audit, supervision, tax and other departments, which causes the financial personnel to think rigidly. Not only the knowledge of financial analysis is lacking, but also the recognition of the importance of financial analysis work is lacking.
Finally, in the enterprise, most departments and employees believe that the financial analysis work has nothing to do with themselves, but the work of the Finance Department. As a result, the financial analysis data is limited to the single financial data source of the Finance Department and is separated from the actual operating data of the business department. In the business management activities of the enterprise, from the management to the financial personnel, to each department, they failed to pay attention to the financial analysis work, resulting in the lack of recognition of the financial analysis work, which is difficult to form the core competitiveness of the enterprise.
2. The comprehensive quality of financial analysts needs to be improved
At present, most enterprises are still short of professionals engaged in financial analysis, and financial analysis is generally prepared by accounting personnel. Due to the limited time and energy of the accounting staff, and their daily work is mainly focused on the accounting level, they did not go deep into the field to understand the business problems, assets and customer needs of the enterprise, and did not understand the specific meaning of the financial analysis results. Therefore, the financial analysis prepared by the accounting personnel can only be limited to simple data analysis, and can not start from the actual business situation of the enterprise, nor can it reveal the hidden dangers and risks in the business management process.
3. The financial analysis data is single or even distorted
The key to financial analysis is data quality. To truly play a role, financial analysis must be based on multidimensional information and data changes covering the operation of various departments of the enterprise. In particular, important factors that affect enterprise decision-making, such as resource and personnel allocation, industry dynamics and technological innovation, fiscal and tax policies and local laws and regulations. However, the internal operation and management information of an enterprise is often in an opaque and incommunicable state, and the communication between various departments is not smooth, resulting in inconsistent internal data caliber, inaccurate data, and insufficient data depth and breadth. These data defects seriously affect the financial personnel to do professional financial analysis, and it is difficult to deeply explore various risks in the enterprise operation and management process.
Therefore, in the process of financial analysis, financial personnel are often limited to the financial statement data based on historical accounting methods, and the selection of financial indicator system lacks the height of business strategy. In the case of limited internal information exchange, financial analysis indicators often do not fully apply various types of financial analysis indicators, such as static indicators and dynamic indicators, qualitative indicators and quantitative indicators, financial indicators and non-financial indicators. The integration of financial analysis and enterprise business operation is low. It is difficult for financial personnel to use the multi-dimensional data of the actual business situation to connect multiple types of financial analysis indicators and conduct comprehensive analysis on the whole, which has caused the content of financial analysis to be empty and weak, and the reflected information does not match the actual situation.
4. Rigid application of financial analysis indicators
The rigid use of financial analysis indicators and the lack of scientificity are common problems in the financial analysis management of enterprises. Most enterprises use the financial statement data to understand the financial situation of the enterprise in a certain period of time. Through some theoretical quantitative indicators, they analyze the ability of the enterprise in operation, debt repayment, profitability and other aspects. This kind of financial analysis is only based on the reflection and summary of the current situation of the enterprise, and the basis of the analysis is only limited to the production and operation results at a certain point in time. It cannot truly reflect the actual financial situation of the enterprise, nor can it reveal the future development direction of the enterprise. The financial statement data at a certain time point failed to reflect the whole process of enterprise value creation, and the financial analysis based on this was also separated from the enterprise's development strategic objectives, and could not achieve the integration of industry and finance. Due to the limitations of basic data in the financial analysis process and the inflexible use of analysis indicators, the financial analysis results cannot recognize the growth point of enterprise value, and there is no way to talk about how to improve the enterprise value. The rigidity and backwardness of financial analysis data indicators and analysis methods cannot sustain the development of enterprises.
4、 Suggestions on optimization of enterprise financial analysis
The importance of financial analysis in the financial management of enterprises is becoming increasingly apparent. The decision-making level of enterprise management should timely recognize the importance of financial analysis, promote the active cooperation of all departments in the enterprise, start with improving the construction of financial analysis system, scientifically use financial analysis methods and financial analysis indicators, improve the data accuracy of financial analysis reports, and then improve the overall quality of financial analysis reports. Such financial analysis results, It can provide strong support for the enterprise management in the process of making business management decisions and strategic objectives. Enterprises can improve financial analysis from the following aspects:
1. Improve understanding of the importance of financial analysis
The decision-making level of enterprise management and financial management personnel should enhance their awareness of financial analysis, and their understanding of financial work should be transformed from traditional accounting concepts to modern financial management concepts, so as to improve the position of financial analysis in financial management. Enterprise decision-makers should also promote financial analysis to the height of enterprise business strategy, so that financial analysis can play a key supporting role in enterprise business management activities, effectively serve the overall business strategy of the enterprise, and help the sustainable development of the enterprise.
Financial analysis is an inseparable key part of financial management. Financial personnel should pay attention to financial analysis. In the process of analysis, they should scientifically choose analysis methods that are suitable for their own production and operation characteristics from the perspective of enterprise strategic management, financial management, marketing, etc., to further improve the quality and efficiency of financial analysis.
2. Improve the professional level and basic quality of financial analysts
In the enterprise financial analysis work, financial professional analysts play an extremely important role. To select excellent financial analysts, we should establish a comprehensive and reasonable financial personnel selection mechanism. When selecting professional financial personnel, on the one hand, we should screen them from the financial professional knowledge level, and on the other hand, we should conduct a comprehensive evaluation of their professional ethics and professionalism. First of all, we should strengthen the construction of professional ethics of financial analysts in order to improve the objectivity and authenticity of financial data, ensure the reliability of financial analysis results, and avoid the risk of human tampering with analysis data and analysis results. Secondly, strengthen the training of financial analysts' professional knowledge and skills, and tap the advantages and potential of financial analysts through multi-channel, multi-level and multi angle training, so as to improve the overall professional analysis ability of the enterprise's financial team. Finally, expand the business cognition field of financial analysts. On the basis of their financial analysis ability, they should be familiar with the overall business operation of the enterprise itself, so that they can revise the financial analysis data source from the perspective of business and improve their comprehensive analysis ability. In particular, it is necessary to strengthen the training in strategic management, marketing, personnel management and other related fields, so that financial analysts can broaden their horizons, divergent thinking, and improve their own quality to improve the level of financial analysis.
3. Strengthen information construction in financial analysis
Strengthen the construction of enterprise informatization, provide more comprehensive, accurate and effective data related to enterprise management and operation through the application of informatization technology, not limited to the basic data of financial statements, and improve the overall quality of financial analysis data and the timeliness of analysis. Enterprises should seize the development trend of the current information age, combine the integrated information construction of enterprise industry finance integration, accelerate the development of financial information system, establish enterprise business operation support information management platform, so as to promote the continuous improvement of business module information data, establish and improve the query and summary functions of data information platform, and build the application of data management model.
On the information platform, financial personnel can use modern technology to improve the efficiency of financial information collection, transmission and processing, improve the ability of data integration, thus forming a comprehensive and accurate financial analysis report, reducing the cost of financial analysis, shortening the reporting cycle of financial analysis, and improving the accuracy and timeliness of financial analysis reports.
4. Strengthen the scientific application of financial analysis indicators
In the enterprise financial licensing, we will adopt multiple analysis indicators and analysis methods to comprehensively analyze and evaluate the financial status and operating results of the enterprise, ensure that the enterprise closely follows the market development direction, make the enterprise's strategic decisions more scientific and reasonable, enable the enterprise to play steadily in the fierce market competition, and lay a foundation for the future development of the enterprise.
The scientific application of financial analysis indicators, first of all, in the process of financial analysis, makes a qualitative judgment on the overall situation of the enterprise, and then makes a quantitative analysis on this basis. The combination of qualitative and quantitative indicators can make the financial analysis results more accurate and comprehensive. Secondly, the production and operation activities and financial analysis activities of an enterprise are a dynamic process that promote each other, and the basic financial statement data generally reflects the business situation in a certain period or time point in the past statically. It is not enough to simply analyze the financial statements. It is necessary to combine the dynamic of business activities with the static of financial statement data to carry out financial analysis. Finally, in different situations, the same indicator can reflect different problems, and a single financial indicator has a certain degree of relativity. Therefore, in the process of financial analysis, attention should be paid to comprehensive analysis of multiple interrelated indicators, so as to improve the accuracy of financial analysis conclusions.
5、 Conclusion
With the expansion of the business scale of enterprises in China and the rapid change of the operation mode, information technology has been widely used in the market economy. In the current rapidly changing market competition, the importance of financial analysis is self-evident. Through the establishment of a sound financial analysis system and the use of scientific financial analysis methods, the level of enterprise financial management has been constantly improved.
Enterprise financial analysis plays a vital role in the development process of enterprises. As a key component of enterprise financial management, it is closely related to the healthy development of enterprises. Therefore, the management decision-making level and financial personnel of enterprises need to gradually change their consciousness, accept new changes, embrace new knowledge, reposition the position and function of financial analysis, strengthen the management mechanism of financial analysis, establish scientific financial analysis methods through information construction, analyze based on financial data and all activities of business management, so as to improve the quality of enterprise financial analysis, The management of cooperative enterprises evades financial risks in order to enhance the core competitiveness of enterprises and ultimately achieve the goal of promoting the healthy and stable development of enterprises.