Analysis and Reporting Services
Accounting information produced by the accounting system is delivered to the inside and outside groups through financial tables. All corresponding people are interested in the enterprise’s activity and results and want to have healthy and safe information about this subject. Information source about the enterprise’s activity and results are the financial tables that are prepared based on that enterprise’s accountancy records and documents.
These tables are the first products of the accountancy process. The next stage is the comparison of the mentioned financial tables with the prior period’s tables or the follow-up and interpretation of the information changes by applying various analysis techniques. The interpretation of the financial tables is the most important guide in taking decisions for the future of the company.
Why the financial tables should be analyzed?
• The information on the financial tables may not provide enough information for the users of the financial information.
• For example, the partners of the enterprise would like to see whether or not their capital is preserved and the profitability of their investment, the managers would like to see the success of the enterprise and the efficiency of the activities, the creditors and vendors would like to see solvency and other information users like the state and public would like to know the enterprise for their own benefits.
• Information on the balance sheet and income statement show general information about that period. At the same time, information on these financial tables are RAW information, many do not mean anything by themselves.
• With these raw information on financial tables, we can only reach to LIMITED information.
• Thus, data on the financial tables should be analyzed and interpreted. Like that, information about the company’s past can be obtained and future decisions about the enterprise can be taken.
What kind of information can be obtained through financial table analysis?
• Enterprise’s asset allocation and whether or not the assets are efficiently used
• Enterprise‘s resource distribution and the degree of benefit from the resources and the profitability of the resources
• Short-and long-term solvency
• The success of the enterprise in the main activity
• Enterprise’s period profitability
• The profitability of the enterprise’s assets
• Cash, inventory and receivables management success etc….
Analysis methods of the financial tables are done in 4 ways.
- Comparative Statement Analysis
- Percentages Analysis
- Trend percentages analysis
- Ratio analysis
As Pakiş Denetim ve Danışmanlık A.Ş., we present the analysis as a report in accordance with the demands from our customers.