Analysis of the balance sheet will help to identify errors in the conduct of financial affairs. And the identification of weaknesses helps to explain some of the difficulties of the company, crisis phenomena, as well as eliminate them and thereby increase profits. As practice shows, doing this is extremely useful.
Why analyze the balance sheet of the company? The fact is that the balance sheet is just a report on the assets, liabilities and equity of the enterprise. For the average person, this is just a set of numbers, but an experienced person, having looked at the balance sheet, will be able to say whether the enterprise will overcome the crisis, whether it will be able to hold out during inflation and whether it is successful in its field.
By the way, the analysis of the balance sheet liquidity is also important. In this case, liquidity shows whether the company copes with its direct obligations, that is, repayment of the loan with liabilities. Agree, for any leader, this information is extremely important. Liquidity is calculated and viewed using a table. In the first column we enter the normative indicators, in the second, third and fourth - the indicators that you got as a result of the calculations. So you can see if your company is dealing with difficulties or not.
There are several types of analysis of this kind. The most common of them are the analysis without changing the articles, the adjusted analysis taking into account inflation. An analytical analysis of the balance sheet is also popular, with the help of which one can consider how dynamically the enterprise is developing. By the way, any analysis is very useful if you want to visually see the results of your enterprise.
Most often, the analysis of the balance sheet is carried out at the end or at the beginning of the year: the results of annual indicators are summed up, it turns out, the company has advanced or vice versa, has lost its position.
Conclusions can contribute to improving the operation of the enterprise, carrying out reforms and solving problems. Due to the visibility of this method of diagnosis, weak spots are visible, clearly, and this helps to quickly eliminate them.
The simplest table of this analysis consists of 15 rows and 4 columns. The first row of the first column remains empty, in the second we write - "Asset", the third is called - "Cash and investments". The fourth is accounts receivable, 5 is most often stocks and costs, and in line 6 they usually mark “Total current assets”. 7 line - "Non-current assets", and 8 - "Property" and "Total". Lines 9 are already “Liabilities”, 10 - “Debt on loans”, 11 lines - “Short-term loans”, 12 - “Total for short-term loans”, 13 - “Long-term loans”, 14 remains to write - "Equity", and in 15 - "Total liabilities." The second column assumes that you know how to use conventions. This is called 1 row 2 columns. Line 2 is empty, in 3 we write - DS, in 4 DZ, in 5 - , in 6 - , in line 7 we put VA, in 8 respectively CBA, line 9 remains empty, in 10 we write the designation - KZ, then in 11 - KK, in 12 - KO, and in 13 - DO. It remains to fill in 14 - SK, and accordingly 15 - ICS. The third and 4th columns are called “At the beginning of the year” and “At the end of the year”, respectively. The heading of the balance sheet analysis table is ready. It remains only to fill it with all the necessary data on the articles, and this is easy to do.
Using this data table you can analyze all the milestones of your business. One condition: the information must be as accurate as possible. In accordance with these data, certain conclusions are drawn about how promising the enterprise is and how well and smoothly it worked. But the main thing that bosses are interested in is the profitability ratio. And it can also be calculated thanks to this table. By the way, in order to conduct a report at a management meeting, it is best to create a chart from this table or graphs - visibility is always held in high esteem.