To determine the trends of certain economic laws and trends, an economic analysis is carried out. This allows us to draw conclusions about the development of the investigated object, as well as to predict its condition in the future. In this case, certain methods and principles of economic analysis are applied. They will be discussed in detail below.
General definition
The methodology and principles of economic analysis make it possible to assess the state of the object under study and to predict its development in the future. This is an important procedure that is used to manage an organization or other system. Economic analysis allows us to assess the state of the general conditions in which the subject operates, as well as his condition and prospects.
Using this action, information is obtained about the processes that occur in the economic environment. Based on these data, the governing bodies choose the development course of the subject subject to them. This allows you to create a reliable basis for the development of the object of study in the future.
During this process, constraints are identified. After developing appropriate measures to eliminate them, it turns out to significantly increase the efficiency of the facility. Therefore, the analysis of various economic indicators is an important work on which management makes decisions in the long and short term.
Subject and Content
You should understand the basic principles and content of economic analysis. This process allows you to study the economics of the organization. It is considered in terms of compliance with previously developed business plans. Particular attention is paid to assessing existing resources. This is necessary to identify unused reserves. All capital, property owned by the organization should be used rationally and efficiently.
The subject of analysis is the state of the property and finances of the company, its current economic activity. Key indicators are considered in dynamics. This allows you to identify existing trends. When identifying unused reserves, management develops a plan for their use in the course of the organization's business.
The content of such a study is a detailed, comprehensive study of various aspects of the organization’s activities based on available sources of information. It is aimed at improving the quality of the organization. For this, appropriate management decisions are made.
Tasks
To understand the essence of this work, it is necessary to consider the tasks and principles of economic analysis. They make a reservation before the start of the research process. The main tasks of the analysis are several.
The first of them is to increase the validity, from a scientific and economic point of view, of existing business plans, various processes of the company. Improvements may also require standards adopted earlier to evaluate the organization. The study also allows a comprehensive assessment of the implementation of the strategic programs set, as well as the compliance of key performance indicators with the specified parameters.
Another objective of the analysis is to assess the effectiveness of the use of material and labor resources, to monitor the implementation of financial settlement requirements. This work is also carried out to identify the amount of internal reserves and change their quantity at all stages of the production cycle. One of the main tasks of the analysis is to verify the correctness and effectiveness of decisions that were previously made by managers.
An object
The basic principles of integrated economic analysis are determined for each object. They may be different aspects of the organization. For example, it may be her financial and material standing, activities in the field of supply, marketing, production, finance.
Such work is carried out both for the entire enterprise as a whole, and for its individual divisions, workshops and sections. Depending on the object and objectives of the analysis, the necessary information is collected. Therefore, before starting the process, the purpose of subsequent work must be stipulated.
Information may be collected from internal and external sources. The result is presented to management in an accessible form. After that, management decisions are made for the object under study, a set of measures is being developed to increase the rationality of the use of existing resources.
Varieties
There are several approaches to conducting such research. They have the same principles of economic analysis. Types of economic analysis are divided into groups in accordance with different criteria. Most often, the internal and external types of studies of the economic activity of an object are distinguished.
The species affiliation of the analysis determines the type of subject that carries out this work. The completeness of the result depends on this. Internal analysis is carried out by special units that are subordinate to the organization. These are functional departments, services. They can conduct the analysis most fully and comprehensively cover all aspects of the company.
External analysis is performed by third-party organs. This, for example, may be the tax inspectorate, banks, creditors or debtors and other competent organizations. This work is carried out with the aim of establishing the financial condition of the company, the liquidity of its assets, and solvency. Based on the information received, conclusions are drawn about the current state of the company, as well as about the prospects for its activities in future periods.
Basic principles
There are certain principles for conducting economic analysis. They are required for all types of research. One of the main principles is scientific. The analysis is carried out in accordance with generally accepted laws of the economy. At the same time, affordable technologies and tools are used, which today are the most effective (for example, computer programs).
Consistency is also important when doing this kind of work. This means that during the study, all the laws governing the activity of the object are determined. Phenomena are studied in their mutual connection.
The analysis should be comprehensive. The obtained indicators are studied in dynamics to identify trends in their changes. Another important principle is the allocation of research objectives. Based on this, appropriate tasks are set. The result should be specific, as well as useful from a practical point of view. It is expressed in exact numbers indicating the places of occurrence of certain indicators.
Method
Each financial manager must clearly understand and master the principles and methods of economic analysis. This makes his work quality and productive. Under the method of economic research you need to understand the approach that is used in a particular case to study the economic activity of the object. There are quite a lot of them.
Methods of economic analysis has a number of features. They allow you to define indicators and organize them. Based on this information, one can draw the right conclusions about the features of the organization’s business.
Also, the methods make it possible to establish the effect of indicators on each other, their causal relationship. Based on this, factors that affect them are distinguished. The form of interdependence of these reasons is determined. Methods allow you to choose techniques for studying such relationships. They quantify this process.
The set of selected methods forms the methodology for the analysis of the economic activity of the organization.
Comparison
The basic principles of economic analysis are applied when choosing methods and techniques for conducting research. One of the main approaches is comparison. It involves the determination of two identical indicators in different periods or at different facilities. Then they are compared. The data obtained is analyzed in order to determine why one factor is different from another, what affected it.
Deviations are expressed in absolute and relative values if a horizontal comparative analysis is carried out. The result can also be compared with a baseline or standard. Vertical comparative analysis allows you to determine the structure of a system or phenomenon.
Comparison can be made using trend analysis. This type of study allows you to determine the relative rate of change of the indicator in dynamics over several periods. Comparison is made with the base year or quarter.
Indicators that are common in terms of volume, cost, quality and structure are subjected to such an analysis. You also need to make comparisons over the same time periods.
Average values
The basic principles of organizing economic analysis are applicable to all methods and techniques. Otherwise, the result will not be of high value in making management decisions. One of the possible methods of research of economic activity is the use of average values. A homogeneous phenomenon can be described by mass data. Average values determine the general pattern of development of the process.
Grouping
To study the dependence within a complex phenomenon, the grouping method is used. The characteristics of the factors should be uniform. This, for example, may be a characteristic of the workshop in terms of commissioning of each piece of equipment, in terms of shift coefficient, etc.
