Category: Real Economy

  • Importance of Financial Analysis in Hospital Economics

    Importance of Financial Analysis in Hospital Economics

    Financial Analysis in Hospital Economics – With the continuous improvement of the National economic level. The uncertainties and risks in the field of economic work are also increasing. And the development space of hospitals is also subject to various restrictions. Survival and development in such a severe situation are common problems faced by all major hospitals. The hospital’s financial department plays a leading role in the economic management of the hospital.

    Here are the articles to explain, the Importance of Financial Analysis in Hospital Economics

    As the main department that can control the economic management of the hospital, paying attention to and doing a good job in financial analysis is of great significance for the hospital to improve its core competitiveness and service quality. Based on this, this paper discusses the purpose, method, and content of financial analysis in hospital economics management. Analyzes the significance of hospital financial analysis, and at the same time find effective countermeasures to achieve high-quality financial analysis. To provide a reference for hospital economic management in my country.

    The main purpose of hospital financial analysis

    The main function of hospital financial analysis is to focus on analyzing the economic-related data generated by the recent experience of the hospital based on the financial statements. Which can scientifically evaluate the financial situation and operating results of the hospital. And at the same time reflects the adverse conditions in the hospital’s operating process.

    To provide a reliable financial basis for the relevant decision-making of the hospital’s economic management. Specifically, financial analysis is mainly the basis for measuring the completed operating results of the hospital. And the financial statements mainly include business income and expenditure statements, drug income and expenditure statements, medical income and expenditure statements, and balance sheets.

    By analyzing financial statements and other accounting data. We can understand the operation, development, and debt repayment of the hospital in a certain period. So that the hospital can understand its economic benefits and financial status. Financial analysis can analyze and set the financial indicators of the hospital, and find the hospital’s Unfavorable factors existing in the development process, make full use of material and human resources, optimize and adjust the asset structure so that the hospital can develop soundly.

    Method and content of hospital financial analysis

    Hospital financial analysis methods

    Hospital financial analysis methods include ratio analysis, trend analysis, factor analysis, and so on. The ratio analysis method is mainly to calculate the structure of financial expenditure, investment, and related ratios. Analyze the operation of the hospital from various aspects. However, this method has no uniform industry norms and standards. It is impossible to judge whether the ratio is high or low.

    However, it is difficult to find a standard for comparison. The trend analysis method can compare the longitudinal financial indicators of hospitals in different periods. And the horizontal comparison between different hospitals can analyze the reasons for the changes in the indicators. Which is helpful for the later development of hospitals.

    However, when applying it, it should be noted that the data in each period is different. So when calculating, it is necessary to unify the caliber and subtract the existing contingency factors. The factor analysis method mainly focuses on the impact of different factors on the indicators. When other When the factors appear to be stable, the order determines the impact of individual changes in different factors. But since the calculation order of the fluctuation values ​​of different factors will also be different. It is difficult to define the impact indicators between different factors.

    Contents of hospital financial analysis

    The main content of financial analysis of hospital economic management is divided into internal and external analysis content according to different information users, but there is also special analysis content.

    The internal analysis content is made by the hospital’s internal managers based on financial analysis to make corresponding decisions, mainly including budget analysis, investment analysis, financing analysis, financial situation analysis and results in analysis, etc. External analysis content includes the external application of the hospital, that is, the superior financial, the competent department, and the bank that opened the account, etc., need to analyze the financial information of the hospital according to their own needs, mainly analyzing the hospital’s asset utilization ability, profitability, debt repayment ability, and comprehensive ability, etc.;

    The content of thematic analysis is provided by the hospital management Carry out corresponding special financial analysis according to the actual situation, mainly to broaden the scope of hospital financial analysis and seek a better market space for the development of the hospital.

    Significance of financial analysis in hospital economics management

    Effectively evaluate the operation of the hospital

    The financial statement in the financial analysis is an important basis for evaluating the operation of the hospital. Based on the financial statement, the financial management personnel can fully understand the specific conditions of the hospital’s profit, operation, and debt repayment, and then scientifically evaluate and analyze the overall operating performance of the hospital.

    Directly discover problems and formulate corresponding measures, and solve problems in time according to the measures. To speed up the improvement of the hospital’s economic management level and ability. And further, enable the hospital to achieve better economic benefits. Financial analysis can clarify the assets of the hospital in each period. The hospital provides an innovative basis for economic management. And provides a basis for economic managers to make scientific decisions, thereby improving the hospital’s economic management system.

    Effective means for hospitals to achieve financial goals

    As medical advancements in recent years have broadened the competitive landscape, financial analysis plays an important role in rationalizing a hospital’s existing assets. Based on various methods of financial analysis, financial analysts discover the potential capabilities of the hospital from multiple negative aspects, make breakthroughs in relatively weak links, improve the utilization rate of the hospital’s material and human resources, and discover the reasons for the low utilization rate, prompting the hospital to Efficient operation of experience activities maximizes the accumulation of economic development, and at the same time accelerates the hospital’s transition from the traditional extensive management model to the refined management model.

    An important basis for economic management decision-making

    Various complicated factors intertwined in the process of hospital economic management, and systematic, scientific, and effective measures can analyze the specific situation in hospital economic management, control the objective laws in economic management decision-making and business operations, and use large amounts of data in financial statements Transform it into useful decision-making information to ensure the normal operation of hospital economic management.

    Financial analysis can provide a macroscopic understanding of the hospital’s current operating capabilities and can provide a basis for investment decisions and risk assessments, making it easier for hospital economic managers to make more scientific and effective operating decisions.

    Effective countermeasures to achieve high-quality financial analysis in hospital economics management

    Emphasis on prior financial analysis

    Financial analysis work requires forward-looking thinking to judge problems, analyze problems, and predict problems. Therefore, it is necessary to combine the hospital’s operating conditions in recent years, understand the market environment and medical development, understand the current operating income and risks, provide a reliable basis for the sustainable and healthy development of the hospital, and enhance the core competitiveness of the hospital.

    Hospitals need to focus on pre-event financial analysis, do a good job in pre-forecast work, judge and collect financial information promptly, make decisions based on scientific and effective financial information, and improve financial management capabilities and quality at the same time to prevent blindness in financial analysis. To ensure the healthy survival and development of the hospital.

    Improving financial analysis methods

    Financial personnel needs to apply different analysis methods to every aspect of economic management. Discover the existing connections, and find effective breakthrough points for the hospital’s economic growth in time. At the same time, they need to judge and research whether it is scientific and reasonable before applying financial data. Don’t ignore the innovative indicators of financial analysis when making profits, and pay attention to the mastery of financial analysis methods to continuously ensure the effectiveness and rationality of financial indicators and data.

    Improve the comprehensive quality of financial personnel

    As the main body of financial management, financial personnel needs to continuously improve the comprehensive quality of financial personnel if they want to obtain ideal financial analysis results. Financial personnel should take the initiative to learn relevant knowledge. They need to understand finance, finance, law, management, and other subject knowledge, constantly broaden their knowledge structure, master the skills and methods of financial analysis, maintain rigor in daily work, take financial analysis seriously Work, continuously improve work quality and efficiency, make financial analysis reports more accurate and reliable, and ensure the scientific implementation of subsequent economic management decisions.

    Conclusion

    To sum up, in the current highly competitive market, hospitals need to start from multiple aspects for financial analysis in economics management and clarify their financial analysis. And strengthen implementation after formulating corresponding systems to ensure that each job implement. At the same time, according to its situation and social background. It should properly adjust and improve the details of financial management. To ensure that the hospital can achieve the goal of sustainable and healthy development.

    Importance of Financial Analysis in Hospital Economics Image
    Importance of Financial Analysis in Hospital Economics; Photo by Markus Spiske on Unsplash.
  • How to do Corporate Financial Reporting and Analysis

    How to do Corporate Financial Reporting and Analysis

    Corporate financial reporting and analysis with problems and countermeasures. It is an important function of corporate financial management. Through the analysis of the corporate financial status and operating results. It can provide a reliable basis for corporate financial activity control, operational risk prevention, and financial decision-making.

    Here are the articles to explain the problems and Countermeasures of Corporate Financial Reporting and Analysis

    This article starts by explaining the problems existing in the financial analysis of enterprises. And puts forward countermeasures and suggestions for doing a good job in financial analysis, hoping to help improve the level of financial analysis of enterprises.

    Problems in corporate financial reporting and analysis

    Incomplete financial analysis data

    When the financial department of the enterprise conducts financial analysis work. It mainly uses financial statements and related accounting materials as the data source of financial analysis. And its analysis conclusion reflects the financial status of the enterprise in the past period. Since an enterprise will affect by many factors in the process of business development, including policy environment, supply and demand, industry changes, inflation, etc., relying only on the data in the internal data of the enterprise for financial analysis will inevitably lead to too one-sided financial analysis conclusions.

    In actual financial work, the financial department often only pays attention to the data collection related to financial accounting. While ignoring the information collection of major personnel changes, staffing, strategic goals, etc. Within the enterprise, which reduces the usefulness and comprehensiveness of financial analysis.

    Financial analysis indicators are not comprehensive

    In the financial analysis of enterprises, only a few key financial indicators often select for analysis. Such as financial indicators in terms of assets, liabilities, production, sales, revenue, profits, etc. It explains the changes in the situation over some time and reveals the cause of the problem from a financial point of view. But ignores the impact of the non-financial factors of the enterprise on the financial status of the enterprise.

    At the same time, most companies lack value chain analysis and do not combine business and finance for comprehensive analysis. However copying the financial analysis index system of other companies makes it difficult for companies to find real problems in business processes in financial analysis.

    Single financial analysis method

    Most companies tend to choose ratio analysis and comparative analysis in financial analysis to reflect the financial status of the company over some time. But because such analysis methods generally use the relevant data in the financial statements as the source of financial analysis data. The financial statement data reflect the economic events that have occurred in the enterprise. So the financial analysis results can only explain the operating conditions of the enterprise in the past period. But cannot predict the future financial trend of the enterprise.

    At the same time, different types of enterprises have different financial characteristics. It is necessary to consider whether the index data is accurate and comparable. If the comparative analysis method uses blindly for financial analysis, the financial analysis results may lack authenticity and consistency.

    The quality of financial personnel is not high

    In the financial work of enterprises, the quality of financial personnel directly affects the level of financial analysis. However, judging from the current situation, the professional quality of some financial personnel in the enterprise is low. And is difficult to complete the financial analysis work. The specific manifestations are: first, the financial personnel only pay attention to the comparative analysis of financial data. Which makes the financial analysis work remain at a shallow level.

    There is no in-depth exploration of the internal relationship between financial data around the business needs of the company. And the financial analysis results are not used to reveal the problems existing in the business management of the company. Little known about operations and business development. Which leads to a disconnect between financial analysis and business management needs. Third, financial personnel only conduct financial analysis based on the data in the financial statements. Without taking into account external factors that affect the company’s financial status.

    Countermeasures and suggestions to solve the problems of corporate financial reporting and analysis

    Broaden the sources of financial analysis data

    The financial department of the enterprise should comprehensively collect financial data. And non-financial data to provide reliable data support for the financial analysis work. To ensure the objectivity and comprehensiveness of the financial analysis conclusions. The source of financial analysis data should include not only the basic data in the financial statements of the enterprise. But also information such as corporate governance structure, internal staffing, and business process adjustment.

    In addition, the financial department also needs to conduct in-depth research on changes in the external environment of the enterprise. Collect information and data on fiscal and taxation policies, industry competition, technological changes, etc. And make a more comprehensive evaluation of the financial status of the enterprise based on internal and external information. At the same time, the financial department should shorten the cycle of financial analysis as much as possible. And enhance the timeliness of financial analysis, to provide an important basis for business decision-making in time.

    Construct a financial analysis index system

    Financial analysis of enterprises should improve the index system to cover both financial indicators and non-financial indicators to ensure the integrity of the financial analysis. At the same time, the financial analysis index system should be constructed according to the characteristics of the enterprise’s business operations. So that the financial analysis work can closely fit the actual situation of the enterprise’s operation and management. Taking small and micro loan companies as an example. It is necessary to focus on the analysis of the company’s asset status, liability status, and operating status.

    The operating status analysis is subdivided into main business income, main business costs, other business profits, management expenses, and financial expenses. , investment returns, and other aspects of the analysis. Since the microfinance company’s business is mainly to collect interest on loans, in the financial analysis, the loan scale, loan term, loan method, loan interest rate, as well as the asset size and asset status should be taken as the focus of analysis, and objective analysis and evaluation should be made.

    For example

    The larger the single loan size of a small loan company, the lower the transaction cost and the higher the benefit. However, at the same time, it will lead to excessive concentration of the company’s funds. If bad debt losses occur, it will affect the company’s sustainable operation. The loan period of microfinance companies is mainly short-term, and the loan methods are guaranteed loans, credit loans, mortgage loans, and pledge loans, and the loan interest rate is much higher than that of banks.

    Therefore, in financial analysis, it is not only necessary to analyze the company’s profitability, but also to analyze the company’s capital turnover, combined with the company’s credit reporting system, to make an objective evaluation of the company’s financial status and accurately identify the financial risks the company faces in its operations. . In addition to financial indicators, microfinance companies also need to analyze non-financial indicators, including budget completion, customer satisfaction, loan product, and service quality, business innovation capabilities, market share, etc., to provide a comprehensive basis for company performance assessment and evaluation.

    Improve financial analysis methods

    Enterprise financial analysis should pay attention to the improvement of analysis methods, and flexibly adopt various analysis methods. Such as horizontal analysis method, vertical analysis method, trend analysis method, ratio analysis method, factor analysis method, or combining multiple financial analysis methods to complement each other. Supplements to improve the accuracy of financial analysis conclusions.

    Enterprise financial analysis should adopt quantitative and qualitative, static and dynamic analysis methods, and financial analysis should run through the pre-event, in-process, and post-event of corporate financial activities, and do a good job in pre-event forecast analysis, in-event control analysis, and post-event summary analysis Work. With the continuous acceleration of enterprise financial accounting information construction, enterprises should make reasonable use of financial analysis, financial decision-making services, and other functions in the financial system to quickly collect financial data and improve the efficiency of financial analysis.

    Improve the professional quality of financial personnel

    Enterprises should pay attention to the construction of high-quality financial work teams. Require financial personnel to have strong professional capabilities, and effectively improve the level of corporate financial reporting and analysis. The specific measures are as follows:

    First, strengthen the training of financial personnel. Enterprises should organize financial personnel to participate in professional training on a regular or irregular basis. So that financial personnel can master financial analysis methods, improve financial analysis skills, and ensure that they complete financial analysis work with high quality.

    The second is to expand the knowledge of financial personnel. Financial personnel must not only master financial professional knowledge. But also understand multi-disciplinary knowledge, such as economic law, management, etc. So that financial personnel can make decisions on the business management and financial status of the enterprise based on financial analysis data combined with knowledge of various disciplines. more accurate evaluation.

    The third is to participate in operation and management. Enterprise managers should allow financial personnel to participate in the operation and management of the enterprise so that the financial personnel can grasp the operation of the enterprise and understand various business processes, to ensure that the financial analysis work meets the needs of the enterprise operation and management, and can provide a reliable basis for enterprise financial decision-making.

    Conclusion

    Enterprises should pay attention to financial analysis work, enhance the important position of financial analysis in enterprise financial management and operation management, and give full play to the functional role of financial analysis. The financial department of the enterprise should expand the source of financial analysis data, build a comprehensive financial analysis index system, and flexibly adopt a variety of financial analysis methods, to continuously improve the level of corporate financial reporting and analysis work.

    Problems and Countermeasures of Corporate Financial Reporting and Analysis Image
    Problems and Countermeasures of Corporate Financial Reporting and Analysis; Photo by Renato Marques on Unsplash.