Understanding The Quality Of Financial Analysis

The result of financial analysis is out of line with the actual use. The purpose of financial analysis is to find out the problems existing in the process of production and management and provide basis for decision-making. However, many enterprises do not organize the financial analysis well, and have not used the results of analysis to improve the management of enterprises. As a result, it wastes both the resources of enterprises and the loss of financial analysts, thereby affecting the enthusiasm of employees to participate in improving enterprise management.

1, financial analysts lack rational analysis of some financial indicators. Financial analysis itself is not the answer to the problem, but a process of finding the problem. Our financial analysts usually compare the analysis results with some conventional standards when conducting financial analysis, and do not analyze these problems themselves, which results in abusing some standards.

2, the quality of financial analysts is not high enough to meet the requirements of financial analysis. At present, financial management is developing towards the direction of strategic financial management. It requires financial personnel not only to grasp the knowledge and methods of financial analysis, to have a comprehensive understanding of various business activities of enterprises, but also to have the basic ability of financial analysis, but also to have a wider range. Width of knowledge 。 Some financial personnel are not of high quality and lack the ability to do well in financial analysis. Some do not go deep into the reality, but just sit in the office for financial analysis, which will inevitably affect the development of financial analysis and improve the quality of analysis.

3, do not understand the business situation, lack of grasp of the relationship between the local and the overall situation. Enterprise funds are constantly changing along with business activities, and the operation of enterprises must be reflected in the changes of funds. Therefore, we must familiarize ourselves with the operation situation if we want to analyze the changes in enterprise funds. In a large number of analysis reports, we often only talk about changes in funds, do not talk about the impact of business activities on the change of funds, and isolate the economic matters that affect each other and integrate the two. The situation is that financial personnel lack the understanding of business operation and can not judge the problems existing in the business operation and evaluate the business performance from the changes of funds.

4, lack of financial analysis report writing skills. In complex financial activities, we can not skillfully use expertise to classify and anatomize complex financial activities and their achievements. Therefore, the analysis report issued is not rigorous, or inconsistent, or can not justify itself. In addition, financial analysis Presentation According to the results of the analysis, a comprehensive written report is written. A good analysis report should be a compact structure, a clear hierarchical structure, a key point, a reasonable reasoning, and easy to understand, rather than complicated, or only a simple arrangement of several sets of figures, lacking practical value.

In use financial analysis The result is easy to go from one extreme to the other. The production and operation of enterprises are multifaceted, and the operation of enterprises is also manifold. The results of financial analysis should also be manifold. When some enterprises use the results of financial analysis to improve the management of enterprises, they often only attach importance to one aspect of the analysis results, but do not attach much importance to and consider another aspect. The result is that enterprises make decisions based on the results of financial analysis, which makes it easy for enterprises to escape from one extreme and fall into another extreme.