The internal financial and accounting analysis is made with purpose and ordered by the company’s management.
Our understanding is that a company is managed more efficiently if it makes currently and periodically an internal financial and economic analysis of its condition. Then the risk of potential errors and financial losses of the activity are limited to the relevant minimum. On the other hand, due to the findings of the analysis, grow the capabilities of the company to better profitability, competitiveness and prospects in its development.
To achieve those results, it is necessary at least once a year to conduct an analysis of the financial position of the company on indicators in chronological and structural aspect. In particular :
• income and expenses of the activity;
• non-current and current assets of the company;
• balances of receivables and liabilities;
• total assets and liabilities of the company;
• cost price of a unit of production;
• profitability of the activity;
• market value of the company, etc.
