It is difficult to overestimate the role of economic analysis in the organization and management of a modern enterprise or firm. The most complete option is a comprehensive economic analysis that allows you to make optimal decisions in these matters and ensure their maximum effectiveness. In the process of any economic research, primary information is analyzed for:
- comparison of the performance of the enterprise with indicators of previous periods, planning and forecasting and indicators of other enterprises;
- establishing the most important factors affecting the economic situation of the enterprise;
- identifying shortcomings and miscalculations in the adoption of management decisions to manage the enterprise or firm.
The content, objectives and principles, which involves a comprehensive economic analysis, are as follows:
- the content is knowledge and possession of reliable economic information, which gives an idea of the work of the subject of analysis. This allows us to make the right decisions on managing the enterprise, to adequately evaluate its business planning, to find weaknesses and on-farm reserves to overcome negative phenomena.
- the tasks that a comprehensive economic analysis solves can be reduced to solving the following problems:
a) the study of all factors affecting economic activity and determining the positive and negative results of this activity;
b) an objective assessment of the business activities of the enterprise;
c) scientific substantiation and scientific examination of business plans of the enterprise;
d) the search and determination of on-farm reserves for the development of a company or firm.
As a rule, the main sources that are used in complex analysis are the data of operational, statistical and accounting.
All the results of business activities, indicators of the financial performance of the enterprise are contained in the financial statements. It also focuses indicators to characterize these results.
The most informative balance sheet, as well as a document such as a profit and loss account. Statistical reporting data is also required for conducting CEA. For KEA, just reporting is not enough, the planned and normative indicators of the enterprise’s work are mandatory, legislative acts, technical documentation, organization’s business documents, information in the media, information in the databases of the State Statistics Committee are also used.
There is an empirical procedure by which a comprehensive economic analysis of an enterprise is carried out, which includes the following stages:
Stage 1: a preliminary description of business activity according to a system of generalized indicators. A preliminary conclusion on this stage is based on a relatively limited number of key indicators.
Stage 2 - a detailed analysis, which includes an analysis of the technological level of the company, solvency, the study of social, foreign economic, natural conditions, labor resources, sales conditions, profitability, general financial condition.
Stage 3 - includes a comprehensive assessment of the effectiveness of business activities and performance
The name itself - a comprehensive economic analysis - involves the application within its framework of the most diverse set of methods and directions of analytical work. You can name some of them.
The systematic approach is based on the fact that the business activity of an enterprise or company is considered from the point of view of its structural and functional organization, in the interconnection of all its divisions and the logical sequence of their business activities.
The tasks and sources of such areas as a comprehensive economic analysis of financial activities are the study of the financial performance of the enterprise, the implementation of sufficient and necessary levels of control over it, the study of reserves for profit.
The complex study includes other areas of analysis. These are such as the analysis of fixed assets, their movement and structure, efficiency of use, analysis of resources and their security, analysis of labor resources and many other aspects.
