Financial Personnel Need Regular Accounting Analysis.

The ultimate goal of financial analysis is to provide decision support for management decisions. Therefore, we must provide solutions and suggestions after analyzing the causes of the problems.

Adequate preparation and material support is provided at the conference to enable the management to fully trust and accept the solution.

Financial personnel need regular accounting analysis to understand the operation of enterprises.

Then, what problems should we pay attention to when doing accounting analysis?

Usually, financial personnel will have a mindset. They can not distinguish the level and priority of their own financial data, feel that everything is important, and all the results are stacked up, and there is a great potential for overwhelming.

In this case, even if there is a final conclusion, it may be too heavy to arouse the attention of readers.

Worse still, there is no conclusion when the list is finished. Readers may be confused and confused.

Enterprise positioning determines the financial position. What enterprises concern is that financial analysts should pay attention to it.

The mode of thinking should start from business rather than finance alone.

The position of Finance in enterprises can be divided into several levels.

The entry level is the gatekeeper, who says that the main function of finance is to ensure compliance and legality of financial operations.

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At the beginning of the level, the main functions of Finance begin to focus on the management of participating enterprises, and the components of decision making gradually increase.

Therefore, focusing on the industry news, understanding the development strategy of enterprises and the stage of development of enterprises, it will be more meaningful for financial personnel to better use their own advantages and contribute to the development of enterprises.

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It is to pform the production and operation activities of enterprises into financial information and record them back. When we try to make analysis and speculation on the production and business activities of enterprises through reading financial information, we will inevitably need to restore the production and operation situation with the original production and operation information.

Therefore, the mode of thinking should start from business rather than simply looking at finance.

The contents of financial analysis must include:

Analysis of financial statements - project analysis and correlation analysis of three major tables;

Analysis of key indicators DuPont analysis and important business indicators (such as operating rate, scrap rate, etc.);

Enterprise value analysis - discounted cash flow (DCF) and internal rate of return (IRR);

Combining static and dynamic analysis - look at the trend, look at the structure, see the ratio, look at it together.

It should be emphasized that financial analysis is not the index of many indicators.

One of the skills that financial personnel should develop is to express the results of financial analysis in business language.