Tag: Analysis

  • Accounting Processing Cycle Value-Added Deduction Tax Return

    Accounting Processing Cycle Value-Added Deduction Tax Return

    A brief analysis of the accounting processing cycle of value-added tax deduction tax return essay. To be able to effectively implement the purpose of tax reduction and fee reduction and reduce. The pressure on the capital cost of enterprises, the State Administration of Taxation issued relevant documents. The accounting processing cycle of value-added tax retained tax returns in the year. Clarifying the calculation method of value-added tax retained tax returns for enterprises, applicant conditions, etc. To provide an effective basis for the implementation of value-added tax retained tax returns. However, when the accounting processing cycle of the actual value-added tax deduction. And the tax return of the enterprise stands affected by various factors. It is prone to various risk problems and accounting processing problems.

    Here are the articles to explain, the accounting processing cycle of value-added tax deduction tax return essay.

    Based on this, the following will be a brief discussion, analyzing the accounting treatment methods. And common risk issues under different conditions of value-added tax retention and tax return. Put forward suggestions for common risk prevention measures to strengthen risk prevention. And control of value-added tax retention and tax return processing.

    Keywords:

    • value-added tax;
    • retention tax return;
    • deduction tax return;
    • accounting processing;
    • accounting processing cycle;
    • risk prevention

    The pilot implementation of value-added tax retention. The tax returns can allow enterprises to enjoy the tax reduction and fee reduction policy. With the help of the implementation of value-added tax retention and tax return. It can effectively alleviate the cost pressure on enterprises and enable them to make full use of their capital. Since value-added tax retention and tax return is a new business. The relevant documents do not put forward clear requirements for the accounting processing of value-added tax retention and tax return.

    Therefore, it is easy to hide risks during the processing process, which affects the effect of the accounting processing cycle. Therefore, when enterprises are piloting the work of value-added tax retention and tax return. They should pay more attention to the accounting treatment of value-added tax retention. Tax return and the prevention of risk issues.

    The main precautions for a value-added tax deduction and tax return

    (1) Clarify the concept of incremental tax deduction

    Due to the coexistence of multiple value-added tax rates in our country. There are certain differences in the applicable tax rates between enterprises. The tax inversion may occur in the accounting process of value-added tax deduction and tax return. Therefore, to be able to carry out efficient accounting processing of value-added tax deductions and tax returns. The concept of incremental tax deductions must first clarify. And the accounting processing cycle must carry out according to the requirements of the tax return.

    Before an enterprise conducts the processing of value-added tax retention and tax return, general value-added tax taxpayers and professional processing agencies can understand the relevant notification documents issued by the State Administration of Taxation, correctly understand the concept of incremental tax retention and tax deduction, and carry out accounting processing cycle and value-added tax retention and tax return operations by the relevant notification documents of the State Administration of Taxation, to reduce the probability of tax risks and failure to process applications in the accounting processing cycle process of value-added tax retention and tax return and ensure the orderly advancement of value-added tax retention and tax return work.

    (2) Pay attention to the conditions for applicants for tax returns with tax credits

    The value-added tax retention tax return has certain requirements for the applicant’s credit evaluation and violations of laws and regulations. Therefore, when processing the application for a value-added tax retention tax return. We must pay attention to the analysis of the applicant’s conditions to ensure that the applicant’s conditions meet the requirements. Judging from the documents issued by the State Administration of Taxation. There are strict requirements and regulations on the conditions for the tax return of the retained tax credit for general value-added tax taxpayers.

    Only taxpayers with a credit rating of C or above allow applying for the tax return of the retained tax credit. And general value-added tax taxpayers must also ensure that they have not committed illegal and illegal tax operations. Within 36 months of applying for the tax return of the retained tax credit. And their application for the tax return of the retained tax credit will approve and enjoy the value-added tax return policy. Suppose the tax credit rating and tax behavior of the general value-added tax taxpayer meet the application requirements when applying for a tax return. But the subsequent tax credit rating drops, and the application conditions cannot meet.

    In that case, the tax authority will not recover the tax return. In addition, due to the coexistence of multiple tax policies in our country. There can be different tax treatment plans for the same tax situation. Therefore, when taxpayers apply for value-added tax retention and tax return. They must pay attention to whether taxpayers have also enjoyed other tax preferential policies. And properly handle the application for value-added tax retention and tax return.

    (3) Calculate the return of the incremental tax credit

    When the value-added tax retains for a tax return, the tax amount can calculate scientifically to avoid tax risks. And ensure the implementation of the purpose of the tax reduction and fee reduction policy. The calculation of the tax return amount of the incremental retained tax credit can obtain by multiplying the three data of the incremental retained tax credit. The proportion of input, and the tax return rate that ordinary value-added tax taxpayers can enjoy. Judging from the research on relevant national tax policies, the tax return rate that ordinary taxpayers of value-added tax can enjoy is 60%. While taxpayers of advanced manufacturing can enjoy a 100% tax return rate.

    Therefore, when calculating the value-added tax deduction tax return amount, we should pay attention to the analysis of the taxpayer’s industry, distinguish whether the taxpayer belongs to a general taxpayer or an advanced manufacturing taxpayer, determine the tax return rate that it can enjoy, and then scientifically calculate the amount of tax return that the taxpayer should receive based on the actual situation and related policies.

    (4) Other precautions for value-added tax retention and tax return

    In addition to the above common precautions for the processing of value-added tax retention and tax return. There will be various situations in the accounting processing cycle process of value-added tax retention and tax return. If you don’t pay attention to it, it will affect the accounting processing cycle results and create tax risks. Therefore, when processing the value-added tax retention tax return, it is necessary to combine relevant policy documents and pay attention to the processing requirements of the value-added tax retention tax return to process the value-added tax retention tax return application scientifically.

    Accounting processing cycle of value-added tax deduction and tax return

    (1) Accounting processing and analysis of the tax deduction amount retained by ordinary taxpayers at the end of the period

    The main accounting processing cycle situations encountered by general taxpayers in the value-added tax deduction and tax return stand divided into five common processing situations, such as the processing of the tax deduction at the end of the period, the processing of the tax deduction for the relocation of the business location, the processing of the tax deduction for asset reorganization, the processing of the tax deduction during the liquidation period, and the processing of the tax deduction for the tax payable.

    In the process of accounting for the tax deduction at the end of the value-added tax period for general taxpayers, the “Interim Regulations on Value-added Tax” indicate that the tax payable obtain after subtracting the input tax amount from the current sales tax amount of the general taxpayer. If in the calculation process of the tax payable by ordinary taxpayers, the current sales tax amount is not enough to deduct. The remaining tax amount can carry forward and deduct in the next processing process.

    For example

    For a general tax-paying company, the taxpayer’s outstanding value-added tax account credit balance before June 1, 2022, was 120,000 yuan, and the purchase price of the business occurred in June was 4 million yuan, of which the value-added tax was 680,000 yuan, the price of the product sold was 2 million yuan, and the current sales tax was 340,000 yuan. During the processing of value-added tax deduction and tax return, since the amount of tax deduction generated after June cannot offset the amount of tax owed before, the current sales tax amount of 340,000 yuan is the value-added tax deduction at the end of the month. There is no need to transfer it to the unpaid value-added tax for processing, and it can stand directly retained until the next month for the deduction.

    (2) Accounting treatment of the tax deduction for the relocation of the business location of the general taxpayer

    In the process of processing the value-added tax deduction and tax return for ordinary taxpayers, the problem of changes in the taxpayer’s business location will also encounter. It learns from the relevant announcement of the State Taxation Bureau that when the business location of ordinary taxpayers changes, after the industrial and commercial department has registered the change, if the competent tax authority changes, it is necessary to do a good job of cancellation and re-registration of the business location. At the same time, ordinary taxpayers can continue to deduct the amount of input tax that has not stood deducted before the tax stood canceled after re-registration.

    For example

    A company’s previous business location was in Area B of City A. Due to the company’s business development, it moved to Area C of City A for production. Before the relocation, the company had 150,000 input taxes that had not stood deducted. After the company has completed the tax cancellation and re-registration, the newly relocated tax authority in Area C confirms the amount of input tax that has not stood deducted and it is correct, the company can continue to use the 150,000 input tax that has not stood deducted for the deduction.

    (3) Analysis of the accounting treatment of the tax deduction for the reorganization of assets of general taxpayers

    The relevant announcement of the State Administration of Taxation stipulates that after the general taxpayer undergoes asset reorganization, transfers all assets and liabilities to the new general taxpayer, and performs tax cancellation and re-registration by the announcement, the amount of input tax that has not stood deducted before the asset reorganization can still carry forward to the new general taxpayer for the deduction.

    For example

    Company A and Company B are both ordinary taxpayers. When Company A restructures its assets and transfers all assets and liabilities to Company B, Company A still retains 200,000 value-added tax credits that have not stood deducted. During the tax cancellation process, Company A does not need to re-transfer this part of the tax amount, and Company B only needs to declare and deduct 200,000 TAX credits by the original process.

    (4) Accounting treatment and analysis of the number of tax credits retained by general taxpayers during the liquidation period

    In the process of paying taxes on the operation of an enterprise, in the case of bankruptcy and liquidation of the company due to poor management or other factors, the accounting treatment of value-added tax deduction and tax return shall consider based on the “Notice of Certain Value-added Tax Policies”. It stands clearly stated in the relevant policy notice that when the general value-added tax taxpayer liquidates and cancels the company’s assets, the tax deduction amount will not process for a tax return, and the company’s inventory cannot transfer out as the input tax amount.

    Therefore, during the liquidation period of ordinary taxpayers, the processing of the value-added tax deduction can only convert into inventory costs for calculation. At the same time, when the company calculates the taxable income, the company’s value-added tax deduction can deduct. By the relevant announcements and notices of the State Taxation Bureau, the issue of value-added tax retention and tax return can stand effectively dealt with, and the accounting processing of value-added tax retention and tax return can stand done well to avoid tax problems during the processing operation.

    (5) Accounting treatment of the tax deduction amount of the tax payable by ordinary taxpayers

    In the process of paying taxes for general value-added tax taxpayers, there will also stand value-added tax arrears. When this situation stands encountered in the accounting processing of value-added tax withholding tax return, the accounting processing operation of the amount of tax payable by general taxpayers and the amount of tax withholding tax deduction can carry out based on the relevant notice of the State Taxation Bureau to avoid tax problems during the accounting processing process.

    In the relevant documents issued by the State Taxation Bureau for the accounting and processing of tax deductions for general taxpayers, there are clear regulations on the order and scope of the deduction of value-added tax arrears by the input tax amount. When the input tax amount stands deducted from the value-added tax arrears, the tax amount stands mainly deducted by the chronological order in which the company’s tax arrears occur, that is, the tax arrears that occur first stand deducted, and the tax arrears that occur later stand deducted afterward.

    The value-added tax arrears

    What can deduct are mainly bad debts, tax arrears, and late fees for tax arrears, and the actual deduction amount is based on the notice issued by the competent tax authority. If during the accounting process of the tax deduction for the tax payable by ordinary taxpayers, the tax deduction at the end of the period is less than the total amount of tax payable, the tax deduction at the end of the period shall use as the actual tax deduction.

    At the same time, according to the corresponding calculation method, the bad debts and tax arrears, and late fees that can deduct from the tax deduction at the end of the period stand calculated, and the accounting processing of the tax deduction for the tax payable carry out rationally, to avoid the probability of risk problems in the process of value-added tax deduction and tax return, and ensure the quality and efficiency of accounting processing.

    Prevention of the risk of value-added tax retention and tax return

    (1) The risk and prevention of incorrect calculation of the incremental tax deduction amount

    In the process of value-added tax deduction and tax return. Incorrect calculation of the incremental tax deduction amount is a common processing risk problem. Which will have a direct impact on the application for a value-added tax deduction and the processing results. Therefore, when calculating the amount of incremental tax deduction, special attention should pay to the accuracy of the calculation results to avoid the failure of the application for incremental tax deduction due to errors in the calculation results.

    The calculation of the incremental tax credit can consider the taxpayer’s application conditions. Accountants should have a clear understanding of the rolling calculation method of the incremental tax credit. Judging from the relevant documents issued by the State Administration of Taxation. General value-added tax taxpayers can enjoy a 60% tax return rate. While individual advanced manufacturing companies can enjoy a 100% tax return rate.

    Therefore, when enterprises calculate the incremental tax credit, they must also conduct calculation and analysis by their industry policies to ensure the accuracy of the calculation results of the incremental tax credit and control the risk of accounting for the incremental tax credit. If an enterprise has problems in the calculation process of value-added tax deduction and tax return, it can also request advice from the competent tax authority or a professional tax processing service agency promptly to prevent and control the occurrence of accounting and processing risks of incremental tax deduction in advance.

    (2) Risks and precautions that the taxpayer’s prescribed standards have not been met

    In the process of value-added tax retention and tax return, there will also be a risk of value-added tax retention and tax return due to non-compliance with the taxpayer’s prescribed standards, which will affect the implementation of value-added tax retention and tax return. Therefore, when carrying out the work of value-added tax retention and tax return, the taxpayer’s credit rating, violations of laws and regulations, and the enjoyment of relevant tax incentives should be understood and analyzed to assess whether the taxpayer meets the application criteria for value-added tax retention and tax return.

    At the same time, taxpayers themselves should also strengthen their attention to the improvement of the tax credit. Maintain their tax credit, and avoid the occurrence of illegal tax evasion and tax evasion during the tax payment process. Which leads to the inability to meet the value-added tax deduction and tax return standards. If the taxpayer’s situation can adapt to multiple tax policies. The final tax method should still base on the optimal solution.

    And after choosing the corresponding tax policy, we must also pay attention to the compatibility of other tax policies. With the value-added tax deduction and tax return policy to avoid tax risks in the process of tax accounting. In addition, since the newly established corporate tax credit rating is M-level. It does not meet the requirements for value-added tax retention and tax return. So special attention should pay to the criteria for evaluating taxpayers.

    (3) The content of the time regulations ignores risks and precautions

    In the accounting processing process of value-added tax deduction and tax return. It is also easy to deal with risks due to inattention to time regulations. The relevant documents issued by the State Taxation Bureau are clearly stated. That is the general value-added tax taxpayer has already applied for a total tax deduction. And then the tax deduction amount generate. The tax deduction amount calculated in the previous application can no longer use for secondary purposes.

    Therefore, in summary, there are only two processing opportunities for value-added tax retention tax returns in a year at most. General value-added tax taxpayers can apply for an incremental value-added tax return in any month. After meeting the requirements for value-added tax retention and tax return. The specific application time is based on the taxpayer’s situation.

    In addition, if taxpayers file tax return exemption and tax return declaration at the same time. The tax authorities will give priority to the tax return exemption requirements they apply for. Therefore, to avoid such risks during the processing of tax return business. Taxpayers should have a general understanding of different tax return businesses. And pay attention to the application time of each tax return business.

    (4) Failure to obtain the application materials in a timely and accurate manner, risk prevention

    From the analysis of the calculation formula of the value-added tax deduction amount. It can be found that in addition to the prescribed application materials and certificates. The input tax amount on other deduction certificates cannot be used as the value-added tax deduction tax return application certificate.

    Therefore, to avoid the risk of value-added tax retention and tax return due to incomplete collection of application materials, it is necessary to collect relevant documents during the process of value-added tax generation, collect and organize the declaration materials promptly, and ensure that the submitted application materials and certificates are true and reliable, in line with the requirements of the relevant declaration regulations of the State Administration of Taxation, and the application materials and certificates shall not be forged.

    Once it is found that the applicant has used illegal means to falsify the application materials. And defrauding the incremental tax deduction amount will bear corresponding legal responsibilities. Through the improvement of the reliability and authenticity of the value-added tax retention tax return application materials. High-quality accounting processing work is carried out.

    Conclusion

    In summary, when the value-added tax retained tax credit is returned. Attention should be paid to clarifying the concept of the incremental retained tax credit. Reviewing whether the applicant conditions for the tax return of the retained tax credit are up to standard. And carefully calculating the return of the retained tax credit to ensure that the value-added tax retained tax return is correct.

    At the same time, corresponding accounting processing should be carried out according to the different value-added tax retention. And tax return conditions of ordinary taxpayers and attention should be paid to the calculation of incremental value-added tax retention. And tax return errors in the process of value-added tax retention and tax return. Insufficient application conditions for taxpayers, time regulations are ignored, and the application materials are not accurate enough. Comprehensive and other risks prevention, scientific development of value-added tax retention, and tax return work. Promote the implementation of the national tax reduction and fee reduction policy.

    A brief analysis of the accounting processing cycle of value-added tax deduction tax return essay Image
    A brief analysis of the accounting processing cycle of value-added tax deduction tax return essay; Photo by Markus Winkler on Unsplash.
  • Design and Implementation of Hotel Management System

    Design and Implementation of Hotel Management System

    Analysis of the design and implementation of the hotel management system. Computer systems exist used to innovate traditional hotel competition methods and management methods, continuously expand hotel sales, reduce management costs, and improve guest satisfaction. Through the overall architecture of the system functions and also the design of corresponding functional modules, a hotel management system based on the B/S architecture realize.

    Here are the articles to explain, Analysis of Design and Implementation of Hotel Management System

    The system consists of functional modules such as room reservation, check-in reception, guest checkout, report management, and system settings, and realizes the use of computer systems and networks to manage hotel guests, guest rooms, and related equipment information. The system functions are relatively rich and detailed, and also the applied technology is relatively novel, which is of reference value for the design and development of similar hotel management systems.

    Keywords:

    • Hotel management system;
    • Hotel database;
    • The occupancy rate
    • Hotel management;
    • Also, the Hotel system;

    The application of computers in hotel management has existed extended to various departments. And hotel management systems have become an important content of modern hotel management. Using a computer system to manage the affairs of the hotel, not only solves the disadvantages of manual management but also saves manpower and material resources.

    The introduction of computer technology and network technology in hotel management to improve hotel occupancy has become one of the important links in the development of the hotel industry. At present, most hotel management systems adopt a C/S architecture. Each terminal must install a client. Also, Different versions need to develop for different operating systems. Once the operating system upgrades, follow-up technical support needs to provide.

    This article design and implements a hotel management system based on the B/S architecture. The application of this system can effectively manage hotel customer information, reduce complex manual labor, save hotel operating costs, and increase hotel visibility through the Internet, thereby improving hotel market competitiveness. The system uses the guest to book a room and then check in at the hotel or check-in in a non-reservation form.

    There are many booking methods available. The hotel administrator is responsible for entering the basic information of the guests, including the guest reservation form and the check-in form. Certain discounts implement for hotel regulars or guests with more rooms to increase the hotel’s occupancy rate.

    System architecture

    The system is based on the B/S architecture, uses a MySQL database to store data, and uses a Java development environment to realize client and server functions. The main functions include room reservation, check-in reception, guest checkout, report management, and system settings:

    The room reservation function enables guests to book a room, select the reservation method, pay for the room in advance or pay again at check-in, provide the basic information of the guests, and complete the reservation after confirmation. Due to the variety of booking methods, the room payment does not limit to payment at the time of booking. If you book more rooms, you can specify a discount rate based on the standard room rate, which can increase the hotel’s return rate.

    If the guest has already booked a room at the time of check-in reception, retrieve the relevant guest information data in the database, read the ID information, and you can check in. For registration in the form of non-reservation, the administrator needs to manually enter the basic information of the guest and check in separately. The design of the two check-in methods avoids the administrator from entering the same guest information multiple times.

    The guest’s checkout completes the check-in and checkout by paying the room payment. At the time of individual checkout, specify the number of days and room rate to calculate the pre-payment to complete the single checkout, and the payment that has not yet stood completed will pay when leaving the store. Payment, indicating that the guest has completed the checkout.

    More things;

    Report management realizes the query summary of the main reports, constructs the query conditions of the reports, and retrieves the corresponding data to summarize the contents of the hotel reports. The report includes a booking report, reception report, and checkout report, which can comprehensively reflect the hotel’s operating income and expenditure status within a certain period, evaluate and evaluate the income and expenditure management of various links, and become an important basis for the hotel to prepare costs and profits, various expense plans, and designated room rates.

    The system settings mainly configure the basic parameters and system parameters to realize the user’s addition, deletion, modification, and check operations. The system parameters are responsible for maintaining the basic situation of the hotel, such as the hotel name, address, etc., and setting up the guest account and booking account. The basic parameters cover room settings, building area settings, floor settings, etc. User settings In addition to basic operations, corresponding operation permissions can see.

    System module design

    To design effective functional modules, functional independence is a sign of module growth, that is, the existence of functional independence will lead to a good design of the system. Because of this, the basic functional modules of the system designed are for room reservation, check-in reception, guest checkout, report management, and system settings.

    Room reservation

    The room reservation type consists of individual reservations, group reservations, and meeting reservations. Guests make reservations by phone, fax, face-to-face, etc. There are many forms of reservations. Also, Guests are not necessarily in the store. Choose booking methods such as individual guests, teams, or meetings. It is suitable for single or multiple people to book in groups. Pay in advance or pay again when you check-in.

    According to the regulations of the hotel industry, reservations can be classified as guaranteed reservations and non-guaranteed reservations. They can also call formal reservations and informal reservations. The official reservation must ensure the reservation of the guest, otherwise, compensation will require. Informal reservations are subject to availability, and there is no definite loss for breach of contract. The booking operation covers the reservation has stood accepted, arrived, not arrived, and canceled.

    You can check the corresponding guest records. The administrator enters the guest reservation form. There are many fields to fill in the reservation form. But the name of the guest, the number of people booked, the number of rooms. And the arrival and departure dates must fill in. Also, The retention period is the expiration date of the validity period of the order. And the reservation can exist canceled after it expires.

    After the entry complete

    Obtain the unoccupied empty rooms for the room arrangement. The room arrangement can be a manual room arrangement or a smart room arrangement. The smart room arrangement selects the corresponding room in order from the lower floor to the upper floor. The current room arrangement situation of the reservation form can view through the reservation arrangement chart.

    Reservation modification can modify the reservation form of the already booked guest, and the room arrangement information can also modify. If the reservation has stood processed. If there is an advance payment, it must refund to the guest. And then re-enter the advance payment in the accounting processing. The two operations of positioning and filtering condition setting are suitable for the case of more bookings. If no record is the same as the input condition. Then locate the record that is similar to the condition. Also, the filtering setting will keep the records that meet the conditions.

    Check-in reception

    The administrator performs guest check-in reception by filling in the individual guest registration form, group registration form, or meeting registration form. During the entry process, the blacklist, historical guests, etc. will jump out in time. After completion, enter the room card and deposit the relevant information into the room card. The guest selects the room type and whether multiple people are staying.

    The administrator enters the arrival date and departure date calculates the number of days of stay and selects the room to register in the list of available rooms. You can select multiple rooms at a time. If you do not book in advance, enter the guest information such as name, ID number, room type, home address, original room rate, discount rate, etc.,

    The reservation can access the guest information data stored in the database. And multiple rooms can check in at the same time to avoid entering the same guest information multiple times. Team registration is different from individual guest registration. If you book a stay, select the group name, otherwise, you need to enter the group name in advance, etc. If there is no relevant member information, you must enter it manually.

    Guests checkout

    The checkout can be check-out or single-item check-out. Group check-out is specially set up for groups, temporary check-out, and accounting processing. And customer receivable management stand set up for special guests. If a guest needs to leave the hotel to check out, enter the room number.

    At this time, you can check the guest’s account status at the hotel in the main payment account number, sub-payment account number, prepayment, and consumption account. The payment method can be cash, registered account, credit card or check, etc., and the guest’s checkout will complete after confirmation. The system prompts that the check-out is complete, indicating that the guest has completed the check-out.

    Early checkout means pre-payment of the room fee, and the account of a certain guest settle in advance. By entering the guest’s room number, the guest’s consumption items appear, fill in the number of days in advance. Calculate the sum of the pre-payment of the room fee, and complete the early checkout for the guest. A single settlement is a single settlement of the consumption accounts of a certain guest.

    For example

    A single settlement of the item can make for the consumption of meals. Group checkout is a settlement operation for teams and meetings. Only the accounts consumed by the group or meeting settle. After the checkout, the group or meeting members will convert to individual customers. Members can leave the store without checkout or checkout when they leave the store. The former must confirm by the person in charge of the group.

    The temporary checkout function handles the situation where the guest leaves the store. But cannot check out immediately, temporarily hangs up the account, and waits for settlement in the future. Accounts at other cashiers must be settled on the same day. If there are special circumstances, it will be posted to the temporary account when the checkout is not possible on the same day. The historical account is set in the system management.

    When the tenant does not arrive at the cashier to check out but comes to the front desk to check out, the temporary checkout is used at this time. Accounting processing means making up, reconciling, or prepayment of the guests’ accounts, and in-house inquiries to inquire about the guests staying in the hotel, including individual guests, teams, meetings, etc.,

    Enter the query conditions to summarize the guest’s stay in the hotel. Blacklist queries are operations to query, add, modify, or delete persons wanted by the Ministry of Public Security. Such as criminals, spies, or public enemies of the state. When the input guest’s name, ID, etc. matches the person on the blacklist, the system will prompt that a person is a suspicious person.

    Report management

    Report management mainly includes booking reports, reception reports,s and checkout report management. Select the expected arrival guest list, the default is the expected arrival guest list on the same day. And the expected arrival guest situation can be found by modifying the date. The reception report covers the arrival guest table, the in-store guest table, and the departure guest table. The settlement report can be a payment schedule. A replenishment or reconciliation detailed report, a front desk settlement report, and an advance payment report. Guest sub-account schedule, a guest arrears report, a team arrears report, or a unit’s pending arrears report.

    System settings

    In the system parameter function, you can set the name of the main server. The basic parameters of the hotel, and enter the starting account number of the guest. And the starting account number of the reservation, and select the permissions of the functional modules. Such as catering reservations, system management, material management, and reporting system.

    The basic parameter functions mainly include building area settings, floor settings, room type settings, guest room settings, and department settings. User information consists of the operator’s employee number, name, and department to which it belongs, etc. And can give the operator module permissions such as booking, reception, checkout, and catering.

    System implementation

    The system implementation of the hotel management system. It is based on the three-layer MVC architecture. The database access layer is responsible for retrieving and storing entity object data, sending and receiving data transmitted by the controller layer, and the view layer interacts with the controller layer to display page data or return processing results to the controller layer. The entity table of the database mainly includes the guest room table, the guest room reservation table, the guest registration form, the hotel parameter table, and the user table.

    The guest room table is responsible for maintaining hotel room data, including room number, room type, room status, building area and floor where the room is located, room rate, etc. The hotel administrator enters the room data through the operating system setting function. The room type can be a single room, a standard room, a business suit, or an executive suite, and the room status can be set to be cleaned, by individual guests, meetings, control rooms, or teams.

    The guest room reservation table consists of the main reservation table and the auxiliary table. The main table stores the reservation number, basic guest information, arrival date, departure date, reservation room type and room rate, etc. Auxiliary tables such as the room arrangement table record the room number, room type, arrival date, departure date, and other data. Guests provide their basic information when booking a room, select the room type and determine the arrival date and departure date. And store the guest information and reservation information in the room reservation-related form.

    Registration form filling

    The guest registration form covers the main registration form, the team registration form, and the registered room rate form. The main registration form is responsible for storing the basic information of the guest, the date of arrival, the estimated date of departure, the registration category, the registrar, etc. The team registration form maintains the team information, the number of registered guests, the total number of rooms, the type of discount, the type of customer source, etc.,

    The registration room rate form records the registration number, room type, number of rooms, room rate, and discount rate. Guests provide documents and other information when checking in to the hotel. If you have booked a room before. You can obtain the data in the reservation form to avoid entering the same guest’s information multiple times. Otherwise, you must manually enter the relevant data and store the registration information in the guest registration form.

    The hotel parameter table is used to store the main server name, hotel name, starting guest account number, booking account number and cashier account number, etc. The user table realizes the storage of user information and operating permissions such as tenants and operators. The administrator is responsible for maintaining the data records in the hotel parameter table and user table through the system setting function.

    Ending mentions

    The hotel management system is an important content of hotel management. This article expounds on the functional architecture and module design of the hotel management system. The system is relatively rich in functions and the applied technology is relatively novel. Which is of reference value for the design and development of similar hotel management systems. Adopting the hotel management system designed and implemented in this article can not only improve the hotel occupancy rate. But also reduce management costs and lay a solid foundation for the further development of the hotel.

    Design and Implementation of Hotel Management System Image
    Design and Implementation of Hotel Management System; Photo by Edvin Johansson on Unsplash.
  • Human Resource Management Problems in Budget Hotel

    Human Resource Management Problems in Budget Hotel

    Analysis of Human Resource Management Problems in Budget Hotel. With the rapid development of the national economy, people’s quality of life has improved significantly, and people’s material and spiritual needs have increased significantly. Consumer choices have forced hotel management efficiency and quality to further improve, especially in cost-effective budget hotels.

    Here are the articles to explain, Analysis of Human Resource Management Problems in Budget Economy Hotel

    Compared with high-end star hotels, the advantages of budget hotels exist mainly manifested in low prices, a good environment, and professional service. They stand favored and loved by the people, and their development prospects are particularly broad. However, there are still many problems that cannot ignore in the development process of budget hotels. Such as imperfect management mechanisms and a lack of respect and care for employees.

    This seriously restricts the problems and improvement of human resource management efficiency and quality of budget hotels. Which is not conducive to obtaining good human resource management results, affecting customers to obtain a good experience. This leads to the deterioration of the reputation of budget hotels.

    Therefore, budget hotels must strengthen the comprehensive management of human resources, detect and properly deal with problems in human resource management promptly, promote the steady and effective advancement of human resource management, and promote budget hotels to conform to the development trend of the times and provide our customers with efficient and high-quality service.

    Keywords:

    • Budget hotel;
    • human resource management problems;
    • problem;
    • optimization strategy;
    • incentive mechanism

    With the rapid development of the market economy and the maturation of science and technology, budget hotels have shown new characteristics in the process of operation and development. The increasingly fierce market competition and the era of continuous progress have put forward greater challenges and more requirements for the human resource management of budget hotels.

    Strengthening human resource management is an important prerequisite to stimulating employees’ service initiative and enhancing their sense of responsibility. It is also an effective measure to improve service efficiency and promote customers to obtain a good experience.

    Therefore, in the future development of budget hotels, they should pay attention to and strengthen human resource management, always maintain a sense of development that keeps pace with the times, actively update human resource management concepts and explore new management models in line with the development of the times. Adapt to changes in the external environment quickly and promptly, and promote the further improvement of the effectiveness of their human resource management.

    Overview of budget hotels

    The connotation of a budget hotel

    As early as the 1950s, budget hotels appeared in the United States, and many countries and regions called them limited-service hotels. Which are hotel management forms between star hotels and ordinary guest houses and hotels. Its most prominent feature is that it is affordable and cost-effective. It provides guests with relatively complete facilities and services at low prices. Its service model is “b&b” (bed +breakfast). At the end of the 20th century, budget hotels began to appear in our country.

    With affordable room rates and relatively perfect service measures, the market quickly expanded. And it stood trusted and favored by many business people and ordinary tourists. Up to now, a large number of budget hotels such as Jinjiang Inn, 7 Days, Hanting Express, and Rujia Express have appeared in our country. The service targets of this type of hotel are generally working-class, business people, ordinary self-financed tourists, and student groups emphasizing the comfort of guest rooms and the standardization of services, highlighting the characteristics of cleanliness, hygiene, comfort, and convenience.

    Its consumption level is about in the low-to-mid range. It usually only provides accommodation services to customers and breakfast is provided directly by suppliers. There is no separate catering department, and it will not provide customers with meals, bars, shops, entertainment, and other services. Compared with high-end star hotels, the most prominent advantage of budget hotels is “economy”. But the affordable price does not mean that their service quality is poor.

    Human resource management of budget hotel

    Human resource management mainly refers to the comprehensive integration and optimization of the internal human resource structure through a series of scientific and reasonable methods and measures, relying on the recruitment, training, application, evaluation, and motivation of employees, to fully stimulate the enthusiasm of employees for work, promote their potential to stand deeply explored and fully realized, enhance competitive advantages for enterprise operation and development, maximize enterprise value, and promote enterprises to obtain good and generous benefits.

    In a nutshell, the content of human resource management is more complex, mainly involving employee recruitment and selection, employee training, employee performance management, employee safety, and health management, and many other contents. The human resource management of budget hotels mainly refers to the scientific and rational deployment of human resources based on fully considering the nature of budget hotel operations, business characteristics, service models, and other related factors, combined with rigorous, scientific, standardized, and feasible management strategies, through staff training, performance appraisal.

    And other methods, comprehensively stimulate the enthusiasm of employees. And promote them to play an active role in the operation and development of budget hotels. So that service efficiency and quality stand comprehensively improved, and our customers stand brought a good service experience. To improve customer satisfaction while promoting the smooth realization of hotel business goals.

    The main problems in human resource management of budget hotel

    The management mechanism is imperfect and lacks respect and care for employees

    At present, many budget hotels have not yet built a mature and perfect human resource management system, lack unified planning and scientific arrangements for internal personnel, and lack respect and care for employees, making it difficult for employees to have a strong sense of trust and belonging to the hotel enterprise, which directly affects the work attitude and work efficiency of employees, resulting in unsatisfactory hotel management results.

    For example, a fast and economical hotel with operations all over the country has a flat management structure, including three levels the store manager, duty manager, and staff. The latter two undertake more work content. However, the imperfect human resources management mechanism and the lack of enthusiasm of employees make the hotel service efficiency deteriorate, making it difficult for customers to get a good experience, which is not conducive to the steady and sustainable development of the hotel.

    The division of labor between managers and employees is clear, and the authority is too great. The management model of unified orders and absolute obedience to leaders exists adopted. And there is a lack of respect and care for employees.

    Management philosophy lags and lacks attention to human resources

    Many economical hotel management concepts are lagging. And the value and significance of human resource management stand not correctly recognized. And there are even situations where human resource management exists underestimated.

    Failure to support the development of human resource management from the aspects of capital, manpower, system, etc. has caused the functions and advantages of human resource management to be unable to be fully utilized and has also caused a series of problems such as insufficient enthusiasm for work and unreasonable job arrangements. Which have effectively affected the customer experience and the improvement of hotel performance.

    Lack of incentives and serious loss of personnel

    In the operation and development of budget hotels, incentive mechanisms stand generally implemented by foremen, supervisors, etc. But due to various factors, the management of many hotels has full control over work procedures and service quality. Making it difficult for ordinary employees to get the respect and care of leaders.

    At present, individual budget hotels have not formulated incentive mechanisms. And do not pay attention to rewards and punishments for internal employees. Many employees have formed a negative mentality of slowing down, resulting in the loss of hotel personnel. The problem is more prominent.

    Low staff literacy, lack of professional training, and talent reserve

    In recent years, a large number of budget hotels have expanded rapidly in China. However, these hotels generally only conduct simple onboarding training for employees. In addition, many employees and even managers and supervisors have a low degree of education. And there are generally problems such as weak professional knowledge and poor service concepts. Which have greatly affected the hotel management efficiency and the improvement of service quality.

    Many domestic budget hotels lack training awareness and talent reserve awareness and have not formulated mature and reasonable career development plans for different employees, making it difficult for employees to see their development prospects, resulting in many employees leaving their jobs and the loss of hotel employees is serious.

    The performance evaluation system is not sound and lacks effective supervision

    Many budget hotels in China attach more importance to performance management and have created performance evaluation systems one after another. However, some objective problems have effectively affected the improvement of the performance evaluation system. For example, some budget hotels have formulated a top-down evaluation system.

    The hotel headquarters is responsible for setting standards, and local branches are responsible for implementation. But the implementation mechanism is relatively rigid, lacks flexibility, and does not consider the attitudes and suggestions of employees.

    In addition, the supervision mechanisms of these hotels are imperfect. And there has been a separation between short-term performance evaluation and the company’s long-term development strategy. Many branches overemphasize interests and evaluation results in the performance appraisal process, fail to correctly recognize the nature of the appraisal, and ignore the connotation of corporate cultural management, making it difficult to guarantee objectivity and fairness in the performance appraisal results.

    Poor risk resistance

    At the beginning of 2020, the new crown epidemic suddenly broke out, causing many industries and many companies to force to shut down, especially the service industry represented by hotels. To compress expenditures and reduce operating costs, many hotels reduced wages and benefits during the epidemic prevention and control period, and many employees and even senior management resigned, causing the hotels after the resumption of work to fall into the dilemma of staff shortage, which is not conducive to the smooth completion of hotel work, but also effectively affects the customer experience, which is very detrimental to the development of the hotel.

    Optimization strategy of human resource management in budget hotels

    Optimize the human resource management system and give full play to the functions of human resource management

    In the process of carrying out human resource management work, budget hotels should actively optimize the human resource management system and formulate a rigorous and mature human resource management system. Through various methods such as rotation and training, the potential. And the value of existing human resources stands deeply tapped, and the advantages of employees promoted to fully utilized.

    It is also possible to flexibly arrange positions based on clarifying the strengths of different employees, to maximize the effectiveness of human resource management functions. City convenience hotels have done a good job in this regard, not only adjusting the human resource management system with the times but also implementing a rotation system to actively tap and use the advantages of employees, promote them to exert their abilities and charm in suitable positions and promote the continuous improvement of hotel performance.

    Adhere to a customer-centric and innovative human resource management model

    The development of budget hotels is fundamentally based on adhering to the customer-centered service concept, which also directly determines that hotels should innovate their human resource management models based on adhering to the customer-oriented. First of all, budget hotels should correctly realize that what employees want is not just a job, but a career that can realize personal value.

    Therefore, it is necessary to provide employees with suitable salaries and good occupational safety and security. At the same time, hotels need to innovate the operational content of human resource management and emphasize the planning and construction of strategic projects, such as formulating mature and reasonable human resource policies, improving staff training mechanisms, and providing human resource support for business development.

    Secondly, budget hotels should be good at developing human resources in learning and management innovation. If you want to improve the value of human capital, you should actively build a learning organization, create a good learning atmosphere, encourage and guide internal employees to improve and break through themselves, expand their knowledge horizons, and improve their business capabilities, to better serve customers and bring customers a good experience.

    Improve the salary structure and implement incentive salary design

    At present, many budget hotels implement a job salary system, that is, the salary level of the same level positions is the same, which will suppress the enthusiasm of outstanding employees to a certain extent, and it is difficult to retain outstanding talents. Therefore, budget hotels must adjust the salary structure and implement incentive salary design. First, implement a broadband salary system. Workers’ unions in the same level of positions receive different basic wages due to different levels of education.

    Generally speaking, the basic wages of workers with a bachelor’s degree are slightly higher. Then those of workers with a college degree or below. At the same time, the salary content enriches, and the enthusiasm of employees mobilizes through various forms. Such as setting performance compensation and issuing benefits, and forming a flexible and motivating salary system. At present, Hanting Express Hotel has vigorously implemented a broadband salary system and achieved good results. Which not only reflects the hotel’s emphasis on high-capable and highly educated talents. But also helps the hotel retain high-level talents.

    Secondly, build a salary structure system based on performance as the main basis. And divide the monthly salary of hotel insiders into two parts: one is the basic salary, and the other is the performance salary. Adjust the ratio of the two rationally and properly grasp the relationship between performance and salary. To stimulate the enthusiasm of employees while achieving effective control of core positions and important management personnel.

    Improve the salary structure.

    The human resources management department should improve the current salary structure according to the importance of the position. While keeping the total income of employees unchanged, the current monthly salary should divide into two parts: “Basic salary” and “performance salary”. The “basic salary” is the employee’s basic monthly salary, and the “performance salary” is the employee’s performance salary. Divide the wages of employees in important positions or decision-making management into a certain proportion. Generally about 20%, and then honor them after the performance evaluation is competent.

    This can not only mobilize the enthusiasm of employees for work, but also implement the necessary control over employees in important positions or decision-making management, promote budget hotels to actively change their operating mechanisms and ideas with the development of the times, give full play to the role of human resource management innovation, and use various reasonable and effective human resource management measures to attract and retain more talents.

    Strengthen the training of employees and build an excellent service team

    The steady and sustainable development of budget hotels is highly dependent on a management team and staff. With outstanding professional capabilities and high comprehensive literacy. Therefore, professional training for managers and ordinary employees should be strengthened to promote them to master more knowledge and skills and provide customers with more professional and better service.

    First of all, budget hotels should increase the introduction of new people, expand the scope of recruitment for the society, universities, etc., raise the recruitment threshold, strengthen strict control of candidates, and select people with solid professional foundations and high comprehensive literacy to work in budget hotels, and eliminate any form of “relationship candidates”. Ensure the quality of talents from the source, and provide a reliable talent guarantee for the steady development of various businesses and tasks in the follow-up budget hotels.

    Secondly, budget hotels should strengthen the professional training of internal staff, promote internal management personnel to update management concepts and change management methods promptly through training and learning, lead internal staff to strengthen the learning of the latest professional knowledge and skills, and promote the staff’s professional skills and service level to be greatly improved, to obtain good service results, improve customer satisfaction, and enhance customers’ sense of trust and belonging to the hotel.

    Improve the performance appraisal system and strengthen incentives for employees at all levels

    A perfect and rigorous performance appraisal system not only helps to stimulate the enthusiasm and initiative of the hotel staff. But also promotes the timely and high-quality completion of various tasks issued by the hotel. So that customers can get a good experience. Their stay in the hotel enhances their trust and belonging to the hotel. The performance appraisal system can be constructed and improved in the following ways.

    First, there is a clear division of salary levels. The senior management of budget hotels should scientifically and rationally divide positions and ranks based on comprehensive consideration of internal job deployment, development of strategic goals, and other factors, and use this as a benchmark to formulate rigorous and reasonable salary standards for each position, to form a salary system that is compatible with the development of budget hotels and combines “basic salary” and “performance salary” to encourage and motivate employees to continuously improve their business standards and enhance service awareness to obtain higher salaries, and then provide our customers with professional and high-quality services. Secondly, adjust the performance appraisal cycle rationally.

    For example

    Rujia Hotel evaluates the general manager once a year. And the general manager who performs well can often receive generous year-end performance bonuses. However, the evaluation cycle is too long. And it is difficult to find the problems and shortcomings of the general manager in his daily work in time. Which has effectively affected the improvement of hotel operation and management efficiency. To effectively solve this problem, Rujia Hotel began to implement the “4+1” model. That is a quarterly assessment plus a year-end assessment.

    At the same time, Rujia Hotel’s incentive plan has been adjusted to draw a certain percentage of the original year-end performance bonus and distribute it as a quarterly bonus. This measure is conducive to mobilizing the enthusiasm of the general manager and discovering work shortcomings promptly. And immediately taking effective measures to correct them. To promote the efficient and high-quality management of the hotel’s internal management work. To create huge profits for hotel companies.

    Implement the ”shared employees” model to give full play to the value of employees

    The outbreak of the new crown epidemic has highlighted the loopholes and problems in human resource management in many industries. And it has also made hotels deeply aware of the importance of stockpiling talents. In the operation and development of the hotel. The value of its employees can be fully realized through the following methods.

    First of all, tap professional talents and reserve talent strength. During the outbreak and prevention and control of the epidemic, the hotel business has declined sharply. When streamlining the workforce, attention should be paid to retaining senior managers. And outstanding employees and striving to achieve maximum value with the least labor costs.

    Secondly, the “shared employee” model is implemented. This means that employees will cooperate in short-term manpower output in a shared model. So that human resources can flow and the efficiency of social resource allocation can be improved.

    Conclusion

    After entering the 21st century, with the development of the times and the progress of society. The hotel industry has grown day by day, and competition in the industry has intensified, especially when people’s consumption concepts have undergone significant changes, consumption levels have increased significantly, and higher requirements for service quality are put forward. Today, our country’s budget hotels are facing important tests and challenges in the process of operation and development.

    To achieve better development, budget hotels need to further enhance the awareness and problems of human resource management, continuously improve and optimize the human resource management mechanism, carry out regular training and effectively motivate employees at all levels, promote the in-depth exploration and full play of the personal potential and advantages of employees, and provide strong human resource support for the steady development of budget hotels, and promote the smooth achievement of the strategic operating goals of hotel companies.

    Analysis of Human Resource Management Problems in Budget Hotel Image
    Analysis of Human Resource Management Problems in Budget Hotel; Photo by Christian Lambert on Unsplash.
  • Smart Hotel Management under Big Data Exploration

    Smart Hotel Management under Big Data Exploration

    A Brief Analysis of Smart Hotel Management under Era of Big Data Exploration and practice. With the rapid development of science and technology. The Era of big data technology has penetrated various industries in our country and has become an important production factor. In this context, hotels of various themes and also styles are emerging in an endless stream. Therefore, how to build their advantages to attract customers to stay in the fierce competition in the market has become the focus of current hotel management. The advent of the era of big data has opened up a new way of thinking for hotel management. And also smart hotel management model has emerged.

    Here are the articles to explain, A Brief Analysis of Smart Hotel Management under Era of Big Data Exploration and Practice!

    Based on this, this article is based on the current situation of the application of big data technology in smart hotels. Discusses smart hotel management in the context of the era of big data. And also proposes a coping strategy for the application of big data to the implementation of smart hotel management. To conform to the development requirements of the times. And meet the changing needs of the market, hotel types and hotel types have become more and more diversified.

    With the increasingly mature development of big data technology, its integration and penetration with various fields of society is deepening day by day. In terms of hotel management, under the organic combination of big data technology and hotel management, the hotel management model has undergone tremendous changes, and smart hotels have emerged. The improvement and optimization of the smart hotel management model are more in line with the requirements of people to check the location of the hotel, hotel services, and book hotel rooms online.

    It can greatly simplify the hotel check-in process, and it is conducive to promoting the development of modern hotel management and promoting hotel marketing and industry environment optimization. The “Notice on the Issuance of Publicity Themes and Slogans for the 2014 China Tourism Theme Year” issued by the National Tourism Administration is the first time to promote the transformation and upgrading of traditional hotel management models to smart hotels. It can see in the development of the contemporary hotel industry. The application of intelligent hotel management models is already the general trend.

    Overview of big data technology and smart hotel management

    (1) Big data technology

    Big data technology is an advanced technology that has emerged in the process of the continuous in-depth development of Internet technology and information technology. It is a collection of data based on computers and other equipment to obtain, analyze, process, transmit, and manage data. Compared with traditional data processing technology, big data technology has significant advantages of large data capacity, strong receptivity, fast information transmission, high application value, and utility, and its overall functional utility is far superior to traditional data software.

    Based on this, big data technology can further realize rapid processing. And the application of big data traffic when promoting the construction of smart hotel management. To use this as an important opportunity, tool, and also a way to promote the transformation and development of the industry.

    (2) Smart Hotel Management

    Based on digitization and networking technology, realizing the Informationization of hotel management and services is the core content of the smart hotel management model. The smart hotel management model is a new type of hotel management model that has emerged in the context of the Internet era to further meet the needs of the market and social development. It has formed a severe impact on the traditional hotel industry and also poses a new challenge to the hotel management profession.

    The purpose of smart hotel management is to meet the individual needs of customers. At the same time, smart hotel management also has outstanding service principles such as pertinence, comfort, and flexibility. In the actual operation of smart hotels, exclusive service plans exist formulated for customers based on big data information. Customers can also choose the location of guest rooms facing the street, close to the exit, or the center according to their preferences to meet their individual needs.

    However, because the individual needs of customers are very different, therefore. While ensuring the individual needs of the hotel. It should also conform to the principle of integrity in the construction of the smart hotel to ensure the overall function and nature of the hotel. In summary, the smart hotel management model combines the principle of integrity with the principles of room comfort and flexibility, and “removes the dross and takes the essence” of the hotel’s potential information, functions, nature, and connotations, so that the hotel has both humanistic care and high practicality, both high-end style and personalized characteristics.

    Analysis of Smart hotel management structure

    The process of intelligent management mainly involves six structural levels, namely smart hotel management, smart hotel management theory, dynamic smart hotel management, resource layer, ability layer, and the functional layer. The various structures exist closely integrated and support each other. The specific interaction form stands shown in the smart hotel management structure.

    Analysis of smart hotel management functions

    The building infrastructure and service management system are the main components of the current smart hotel management function. The security system and the smart hotel management platform system functions are used as an example for analysis. In the actual operation and also the management of smart hotels. A very strict security system has been built based on smart business philosophy and big data technology. Through the smart hotel management platform, the security system can be adjusted and upgraded.

    In addition, the smart hotel management function has also realized the construction of the EPR system (Enterprise Resource Planning) and the CRM system (customer relationship management system). Which can not only use EPR to realize the management of hotel fixed assets and human resources. But also use CRM to realize customer complaints, customer satisfaction surveys, and the establishment and management of customer personal information files. The EPR system and CRM system realize the unified and intelligent supervision of all hotel resources.

    (3) The generation and application significance of big data

    With the rapid development of Internet technology, the use of mobile devices has become more and more extensive. And various application software has become more and more diversified. Therefore, users will browse information between different software based on mobile devices before traveling. And these browsing traces are big data. Through big data analysis and collation, you can understand the individual needs of users. The generation of big data has certain application significance. Which is conducive to smart hotels distinguishing between new and old customers.

    1. First of all, it is conducive for hotels to formulate exclusive service plans for new customers. Hotels can understand customer preferences based on user big data. Analyze customer actual needs based on customer messages on online platforms, and preset guest check-in plans. And then provide personalized services for first-time customers;
    2. Secondly, it is conducive to hotels to provide old customers with services that are in real demand. After customers stay in the hotel, a series of consumption information will generate. This data information is convenient for hotels to analyze customer consumption trends and consumer preferences, and provide customers with targeted special check-in services and rooms.
    (4) Application of big data technology in smart hotels

    The first is face recognition technology. The application and promotion effectiveness of this technology in the hospitality industry are shown. Smart front desk service terminals can accelerate the development of hotel self-service, Intelligence, and informationization. The smart front desk service terminal can instantly reduce the time for booking and check-in. You only need to follow the prompts to process it quickly, without staying. And automatically issue and recycle room cards, and automatically print bills and vouchers. Which is very easy and convenient.

    Under this status quo, hotel managers do not need to focus on a single job position. And can provide services in different positions according to customer needs. Which can not only effectively improve the comprehensive ability of staff. But also stimulate their enthusiasm for work and maintain a good working attitude. To realize all aspects of smart hotel independent services. The second is intelligent parking technology. As the number of cars in our country continues to rise. The number of private cars has increased in a straight line. And cars have become the main tool for people to travel.

    In this context

    The optimization and upgrading of the overall service methods of hotel parking lots have become an inevitable trend. Smart hotels need to take into account customer parking needs and create smart parking services. With the deepening of the development of smart hotels, smart parking services have gradually become popular.

    Among them, the application of 5G communication technology and artificial intelligence technology in parking management has formed a network cloud platform system. Which is currently the main intelligent parking service method of smart hotels. Compared with traditional parking services in the past, the practical use of the network cloud platform system can make it easier for car owners to understand parking information in real-time and improve parking efficiency through AI and video technology, while also facilitating parking management.

    The smart hotel adopts the Deli Cloud platform, and its intelligent parking system architecture is intranet → parking lot entrance equipment (smart card access control machine, vacancy display screen, cloud parking access control machine, barrier gate) → exit (display screen, smart reader and reader) → parking lot exit equipment (smart card access control machine, cloud parking access control machine, barrier gate)； Intranet → 5G broadband → Deli Cloud Platform → Smart Hotel Management Computer.

    For example

    The intelligent parking system adopted by Xiamen Haicang Gulangwan Hotel in parking lot management has greatly improved the efficiency of parking lot management. The third is Artificial Intelligence (Artificial Intelligence, AI) technology. With the continuous and in-depth development of artificial intelligence technology. The application of smart hotels in artificial intelligence has become more prominent. Artificial intelligence is a modern science and technology for information calculation, retrieval, and reasoning.

    The application of artificial intelligence needs to be based on existing databases to meet the different needs of smart hotels with the support of huge databases of data and information. Artificial intelligence can learn and imitate human thinking. To solve problems based on the logical pattern of human thinking. At this stage, artificial intelligence mainly adopts analytical, human-inspired, and humanized intelligent technologies. The construction of smart hotels in artificial intelligence can further improve the service quality of hotels.

    Analysis of the current situation of big data application in smart hotel management

    (1) Insufficient ideological awareness of smart hotel management

    The smart hotel management model started slowly, and the lack of excellent experience that can be learned in the industry has caused some hotel managers to only explore and move forward on their own, resulting in insufficient ideological awareness of smart hotel management. This is manifested in hotel managers having low ideological awareness. Which makes it difficult to verify the validity of customer information resources. And related information obtains from big data, resulting in smart hotels having a huge database. But there is less actual and effective information content.

    (2) Lack of scientific planning in the construction of smart hotels

    With the rapid development of the tourism industry, hotels also have broad prospects for development under the good development trend of the tourism industry. Which has prompted the emergence of various types of hotels in an endless stream. In the fierce market competition, how to ensure the healthy and sustainable development of hotels is particularly important. Smart hotels are a new business management model that came into being in a new era.

    They have a high competitive advantage among many types of hotels. But at this stage, there is still unreasonable planning in the construction of smart hotels. For example, in the early stage of hotel construction, there was no design and planning for big data. Artificial intelligence technology, hardware, and software result in a disadvantage in the market competition. In the process of passively implementing the transformation of hardware and software in the later stage. It is often necessary to invest more time and cost, which puts the operation in trouble.

    As another example, some hotels have not conducted research on the market and customer needs in the construction of smart hotels, or lack understanding of artificial intelligence technology and big data technology. They blindly invest a lot of capital in the construction of applications and purchase hardware facilities. In the operation, it exists found that the application software or hardware provided does not meet customer needs, resulting in a waste of funds, facilities, and information resources. Which will affect the future operation and market development of the hotel.

    (3) There are shortcomings in the integration of big data and smart hotels

    At present, some hotel managers believe that big data is only an external form of expression in the Internet era in the process of building smart hotels. They believe that the smart hotel model is high-end and intelligent, completely ignoring the personalized characteristics of smart hotels. And also lacks the use of big data to tap into the hidden customer needs of cognition. Which has led to significant shortcomings in the integration of big data and smart hotels.

    Strategies and ideas for the application of big data technology in smart hotel management

    (1) Do a good job in intelligent services and improve the management efficiency of smart hotels

    During the epidemic prevention and control period. To deepen the awareness of prevention and control and avoid unnecessary close contact. The practical effectiveness of the smart hotel management model has become more and more prominent. Hotels can realize online +offline services based on the smart management model.

    1. First, they implement online reservation and order receiving services and set up online customer services to process customer orders.
    2. Second, hotels improve the management efficiency of smart hotels through the development of online intelligent software platforms. Guests can browse hotel reviews based on the online intelligent software platform, consult room types, room prices, and other information, and filter different hotels in various regions;
    3. Third, guests can also self-check-in, select rooms, self-checkout, and print bills;
    4. Fourth, smart hotels should have intelligent control systems that can intelligently control all networked terminals in the guest rooms;
    5. Fifth, smart hotels should also set up intelligent monitoring systems to ensure For the personal safety of guests. The intelligent monitoring system can conduct real-time supervision of some security risks in the hotel and has an intelligent fire control system;
    6. Sixth, the hotel should also set up fully automated public service equipment in subsequent development and construction. Such as an intelligent elevator system, intelligent navigation system, intelligent visual intercom system, intelligent parking lot management system, etc.
    (2) Strengthen cooperation between hotels and online platforms to improve overall service quality

    Through effective cooperation between the hotel and the online platform, one is to enable the hotel to collect a large amount of customer information based on the online platform to understand the actual needs of customers; the other is that customers can directly complete independent check-in, check-out and other behaviors on the online platform, saving customers time and improving check-in efficiency. The third is that after the customer checks out, he can leave the check-in experience and evaluation on the online platform.

    So that the hotel can grasp customer feedback, and then optimize the smart hotel service function and service system. To be able to provide customers with quality service, thereby enhancing the hotel’s image. In addition, compared with the traditional hotel service model, which relies entirely on its facilities to carry out services. Smart hotels based on big data technology can understand the actual needs and preferences of customers. While using external resources to provide customers with personalized services.

    For example, cooperation with other service parties, to provide customers with pick-up, tour guides, food delivery, and other services, can effectively enhance the customer experience.

    (3) Strengthen the application of intelligence and provide ideas for hotel optimization management

    In the future development of smart hotels. It should optimize and improve from the three levels of design, management, and interaction based on the advantages of big data.

    First of all, design changes to mine customer preferences based on big data technology. To meet the individual needs of customers and provide them with personalized package services.

    The second is management change. At present, smart hotel management should support by modern technology to realize the management of hotel human resources, fixed asset resources, and guest room resources, to be able to effectively schedule and control resources, and improve the quality of hotel management and the effectiveness of smart management, and effectively guarantee the economic benefits of the hotel. It should also provide hardware facilities and services such as smart elevators, smart parking lots, and smart restaurants to further promote the intelligent development of hotels.

    Finally, there is the interaction change. The current interaction method is the interaction between the hotel and the customer. The interaction method is too single. In the future development of smart hotels, the interaction method should promote in a diversified direction to realize multi-point interaction between hotels, customers, hotel suppliers, and also third-party service providers. Thereby extending service functions and meeting customers’ “one-stop” service needs. In addition, local tourism administrative departments should also pay more attention to and support the development of smart hotels. To effectively form a pattern of collaborative development of smart cities, smart tourism, and smart hotels.

    Conclusion

    In summary, in the context of the Internet era, big data technology has become a key technology for the rapid development of various industries in society. The organic combination of big data technology and hotel management has accelerated the transformation and upgrading of traditional hotel management models, improved the service level of smart hotels, and promoted smart hotels to become a unique business management model in the context of the Internet era, laying the foundation for the high-quality development of China’s tourism industry.

    A Brief Analysis of Smart Hotel Management under Era of Big Data Exploration and Practice Image
    A Brief Analysis of Smart Hotel Management under Era of Big Data Exploration and Practice; Photo by Adriana Saraceanu on Unsplash.
  • A Case study on EPON Failure

    A Case study on EPON Failure

    EPON Failure Case study. Based on introducing the basic concepts and principles of EPON. This article adopts the judgment and handling methods of some common EPON faults summarized in the work. As well as the two fault handling situations, encountered this year, and makes a simple analysis for maintenance reference.

    Here are the articles to explain, A Case study on EPON Failure

    Technical personnel must not only have theoretical knowledge of the three networks but also have rich practical experience. This article summarizes some common EPON fault judgment and handling methods. As well as the handling process of the two EPON failures encountered, and introduces them for reference by technical personnel.

    Introduction to EPON

    EPON adopts a point-to-multipoint structure and passive optical fiber transmission to provide various services on Ethernet. EPON technology is based on the passive optical network architecture, and defines a new physical layer (mainly optical interface) specification and extended Ethernet data link layer protocol applied to the EPON system to achieve TDM access of Ethernet frames in point-to-multipoint PON.

    In addition, EPON also defines an operation, maintenance, and management (OAM) mechanism to achieve the necessary operation management and maintenance functions. And to separate the signals of multiple users coming and going on the same optical fiber. The following two multiplexing technologies stand used. The downlink data stream adopts broadcast technology and the uplink data stream adopts TDMA technology.

    At the data link layer, the function of the multipoint MAC control protocol (MPCP) is to realize point-to-point simulation in a point-to-multipoint EPON system, support multiple MAC client layer entities in point-to-multipoint, and support control functions for additional MACS. MPCP mainly handles the discovery and registration of ONUS, the allocation of uplink transmission resources between multiple ONUS, dynamic bandwidth allocation, and the reporting of the local congestion status of statistical ONUS. Continue the essay on the EPON Failure Case study.

    EPON fault handling process

    1. A single fault stands mainly accepted by the 112 fault stations.
    2. When the maintenance personnel finds that it is an ONU failure, replace the ONU, and report the MAC address of the ONU to the computer room, and the computer room will do the data configuration.
    3. When the maintenance personnel finds that it is a power failure, notify the property personnel to repair the power supply in time.
    4. When the maintenance personnel finds that the optical path is faulty, notify the computer room personnel. And cooperate with the computer room personnel to find out the fault point, and confirm that the optical cable stands interrupted. Also, notify the optical cable maintenance personnel to repair the optical cable.
    5. When the maintenance personnel finds that the ONU is normal and one of the services is abnormal, notify the computer room personnel to check the configuration of a certain service data.
    6. When the same business failure stands found in a large area. The computer room personnel check the configuration of certain business data.

    Common causes of failure

    1. The service of a certain port of the ONU is not normal. User terminal or external line failure, such as external line disconnection, mixed line; user computer system failure; computer network card failure; user account failure; fault type data configuration failure can also determine based on broadband dialing error code, such as VLAN configuration error; number terminal number error; number permission error.
    2. The entire ONU business is not regular. ONU failure, such as power failure; ONU damage; optical path interruption.
    3. The business failure of the user of the whole board. PON board failure, such as PON board damage; PON board data configuration error; PON board hanging.
    4. The whole frame of user business failure. Uplink port failure; main control board failure; upper equipment failure; network attack.

    Case analysis of EPON Failure Case study

    Case 1:

    (1) Fault phenomenon

    After the power failure in the cell and the incoming call. All broadband dial-up connections of all users in the cell prompted error 678 and could not connect; voice and digital TV services were normal.

    (2) Fault handling process
    1. In the broadband billing management system, the user account check, no abnormalities stand found, and the user account data problem stands eliminated.
    2. The ONU failure has not been restored after restarting, and the M24E board hanging and ONU hanging problems stand eliminated.
    3. Log into OLT to check that the ONU display under each PON port is normal.
    4. Log into the ONU to check that the data configuration is normal and the business board status is normal.
    5. After logging into ONU, the PINGOLT management IP address and PINGDNS address are available, but PINGBAS is not available. Contact the information center to check the BAS data.
    6. The information center personnel requested to change the SVLAN. Since the users of this cell and other cell users share the gei_0/6/2 uplink port, no changes have been made, only the ONU data has been redone, and the fault has not been ruled out.
    7. After using the reset-cardstatno13 command to reset the No. 13 EPFC board, network users under the board can log in normally.
    (3) Analysis of the cause of the failure
    1. The failure was due to a power failure in the community, and many onuses stood registered to the OLT at the same time after the call, causing the EPFC board to hang.
    2. Since there has been no large number of network outages and failures caused by EPFC hanging, the attention mainly focused on the ONU and network data configuration and routing during processing, resulting in a long troubleshooting time.
    3. After this troubleshooting is over, logging in to the ONU still cannot ping the BAS, delete the static route 172 in the ONU.30.0.0255.255.0.0172.30.250.1.
    4. After that, it can ping, but a voice gateway cannot add if the route does not add when configuring the ONU data.
    5. The error “DB: error record not exist” will appear, and the ONU voice protocol will show a BREAK after deleting the static route for some time, and the voice service will be interrupted.

    Case 2:

    (1) Fault phenomenon

    The voice service of the newly installed ONU equipment in the cell failed to register on the Soft switch MGC. While the network and TV services were normal.

    (2) Fault handling process
    1. Compare the version of the new device with the old device is the same；
    2. Check the configuration of the soft switch cell bearer network switch and no problems exist found. The PINGMGC registered address from the ONU device is accessible.；
    3. Whether it is related to the IP address used by the device, delete one of the old ONU device configurations, add the same configuration to the new device, and still fail to register；
    4. Check the configuration of the MGC firewall and all the IP addresses used stand released；
    5. Clean up the resource usage of MGC, the fault is still there；
    6. Through the packet capture analysis, the registration information sent by ONU is uploaded. But MGC has not received the registration information；
    7. There is a main switch in the bearer network, which is a Boda switch. Because the manufacturer did not leave a password, it cannot view. It may be a failure caused by its configuration.；
    8. The manufacturer’s engineers came to the site to make changes to the configuration policy of this switch and restarted some MGC services for troubleshooting.
    (3) Analysis and summary of the cause of the failure
    1. The community initially installed one ONU device in each building and reserved an IP address for the second ONU. Before installing the second device, the NGN bearer network was adjusted several times. And the configuration of the reserved IP address was not considered. This failure occurred.
    2. The reasons for the failure of the voice gateway registration are. A. Voice gateway version matching and configuration problems; B. bearer network configuration problems; C. MGC gateway resource and configuration problems; D. hardware connection problems.

    The fault can certainly eliminate by checking one by one.

    Finishing mentions

    EPON access method is currently the ideal way for comprehensive community access. And its application will become more and more extensive. EPON Failure Case study. How to maintain it well is to go through a long-term accumulation process. As long as you carefully summarize the cause of each failure and do a good job of daily maintenance and maintenance. The maintenance of the EPON network will become easy and fast. And the quality of service of the EPON network can also improve.

    A Case study on EPON Failure Image
    A Case study on EPON Failure; Photo by Sammyayot254 on Unsplash.
  • Financial Analysis Role in Financial Management

    Financial Analysis Role in Financial Management

    As a prerequisite for forecasting, the financial analysis role is also a summary of past business activities in Financial Management. Taking financial analysis is an important means of financial management. It can use to understand the financial status and operating results of the enterprise. And can provide a decision-making basis for leaders. This Essay article Discussion the research on enterprise financial analysis has important practical significance. It proposes to discuss the problems existing in the current enterprise financial analysis in our country. And propose corresponding countermeasures.

    Here are the articles to explain, the Financial analysis role in financial management with method function:

    Financial analysis is mainly based on the financial indicators reflected in the financial report of the enterprise and evaluates and analyzes the financial status and operating results of the enterprise, to reflect the advantages and disadvantages of the enterprise in the operation process, financial status, and development trend, to improve the financial management of the enterprise. Provide important financial information to work and optimize economic decisions. Financial management is an important part of the internal management of enterprises, and financial analysis plays a pivotal role in the financial management of enterprises. Strengthening financial management concepts, financial analysis procedures, and financial analysis methods is important for improving the level of enterprise financial management. significance.

    The content of financial analysis.

    The content of financial analysis stands mainly divided into external analysis content. And internal analysis content is according to different information users, and special analysis content can also stand set. Specifically, the contents of enterprise financial analysis include: financial analysis is a financial activity that analyzes the risks and operating conditions of the enterprise based on the accounting data such as enterprise financial statements, using special accounting techniques and methods. It is an important part of the production, operation, and management activities of an enterprise, as long as its content includes the following parts:

    Analysis of the financial status

    The financial status of an enterprise is the results of production and operation reflected in funds. The assets, liabilities, and owner’s equity of an enterprise reflect the production scale, capital turnover, and stability of the enterprise’s operation from different aspects. Analyzing the financial status of an enterprise includes: analyzing its capital structure, capital use efficiency and asset use efficiency, etc.

    Among them, the analysis of capital utilization efficiency and asset utilization efficiency constitutes the analysis of the operational capability of the enterprise, which is the focus of the analysis of financial status. Common indicators: current asset turnover ratio, inventory turnover ratio, corporate accounts receivable turnover ratio, etc.

    Profitability analysis

    The profitability of an enterprise is the direct purpose and power source of the capital movement of the enterprise, and generally refers to the ability of the enterprise to obtain profits from the sales revenue.

    Profitability can reflect the quality of the business performance of the enterprise. Therefore, the managers, investors, and creditors of the enterprise attach great importance to and care about it. Common indicators for profitability analysis: main business profit margin, operating profit margin, gross profit margin, net sales margin, etc.

    Solvency analysis

    Solvency refers to the borrower’s ability to repay debts. Which can divide into long-term solvency and short-term solvency. Long-term solvency refers to the reliability of an enterprise’s guarantee of timely repayment of debts due in one year or more than one business cycle.

    Its indicators include fixed expense coverage ratio, interest coverage ratio, total capitalization ratio, and debt-to-EBITDA ratio. Short-term solvency refers to the ability of an enterprise to pay. Its debts are due within one year or a business cycle of more than one year. Its indicators include cash ratio, working capital, quick ratio, current ratio, and so on.

    Cash flow analysis.

    Cash flow analysis is a financial evaluation of an enterprise’s solvency, profitability, and financial demand through cash flow ratio analysis. Common indicators include sales cash ratio, cash debt ratio, cash reinvestment ratio, and cash meeting internal demand ratio.

    Analysis of investment return.

    Return on investment refers to the return a business receives after investing its capital. The indicators commonly used in investment return analysis return on capital, return on shareholders’ equity, return on total assets and return on net assets.

    Analysis of growth capability.

    The growth potential of an enterprise is the development potential formed by continuous expansion. And the accumulation of the enterprise through its production and operation activities. It is the most concerned issue for investors when purchasing stocks for long-term investment. The indicators commonly used in growth capability analysis are profit growth rate, sales growth rate, cash growth rate, net asset growth rate, and dividend growth rate.

    The role of financial analysis in corporate financial management.

    Financial analysis is an important basis for evaluating the business performance and financial status of the enterprise. Through the analysis of the financial status of the enterprise, one can understand the cash flow status, operating ability, profitability, and solvency of the enterprise, which is helpful for managers and their related personnel to objectively evaluate operators. Through analysis and comparison, the micro-factors and macro-factors, subjective factors, and objective factors. That may affect the operating results and financial conditions distinguished, and the boundaries of responsibilities stand drawn. The performance of the operators stands objectively evaluated, and the promotion of the management Better management level.

    According to the analysis results of the financial situation, the company can supervise the implementation of national guidelines, policies, laws, regulations, and the completion and payment of taxes and profits. In recent years, China’s reform has continued to deepen, and the government’s management of enterprises has shifted from micro-management to macro-control. Therefore, objective and effective financial analysis data plays an important role in formulating economic policies and judging macroeconomic performance by relevant state departments.

    Tools of Financial Analysis

    Financial analysis is a tool to provide creditors and investors with the correct information to implement decision-making. Investors of enterprises can understand the profitability and solvency of the enterprise through financial analysis. And predict the degree of risk and income after investment, to make decisions. correct decision. In recent years, the transformation and development of a planned economy to a market economy have gradually become apparent. And as the main body of corporate investment has gradually diversified, the creditors do not limit to the national bank.

    In this case, potential creditors and investors in all aspects will take into account the business status of the company in their decision-making, and their decisions on credit and investment need to examine the company’s financial situation, analyze it, and then make decisions. Therefore, financial analysis has become an important analysis method to meet the information required by various creditors and investors under market economy conditions.

    Provide a basis for the internal management personnel of the enterprise to understand the operation situation and direction, tap the potential, and identify weak links. To improve economic efficiency, strengthen management, and provide reliable information, the management personnel of the enterprise can timely Find the problems existing in the enterprise, and then take corresponding measures to improve its operation and management mode, to improve the economic benefits of the enterprise.

    An important means to achieve financial goals is financial analysis to maximize corporate value, and it is particularly important to be good at corporate financial management. By analyzing the financial situation, tapping potentials, finding gaps, exposing contradictions in many aspects, identifying unused human and material resources, and effectively integrating them, we can promote business activities in a healthy direction and operate to maximize corporate value.

    Measures to improve financial analysis.

    Improve the quality of financial analysis basis data.

    First, expand the information disclosed in financial reports. The promulgation and implementation of the new standards have expanded the information disclosed in financial reports, but it is still specific and comprehensive. It is necessary to strictly follow the principle of full disclosure in financial and accounting reports. And financial information that has an impact on investors must disclose.

    Information should be comprehensive, not only certain information but also uncertain information should disclose; not only quantitative information but also qualitative information should disclose; not only financial information but also non-financial information should disclose. People are not only the most active factor in production factors but also a key factor in the development of enterprises. Therefore, the status of human resources should disclose in the financial reports of enterprises.

    Second, improve the timeliness of financial and accounting reports and shorten the financial reporting cycle. Under market economy conditions, the faster the timeliness of information, the better. So the timeliness of financial reports is equally important.

    In recent years, computer technology has been widely popularized, and most enterprises have gotten rid of manual operations. When doing accounting work, their work efficiency has been significantly improved. Therefore, first of all, the disclosure time of financial reports should be revised. Secondly, conditions should be actively created to make full use of the network technology platform to realize the coexistence of real-time reports and regular reports. You can search the financial information of the enterprise at any time, and select valuable information. And improve the efficiency and use of the value of accounting information.

    Strengthen the supervision mechanism of accounting information disclosure.

    To ensure the authenticity of the original accounting data provided by enterprises. And to ensure the reliability and quality characteristics of accounting information disclosure supervision. It is necessary to take necessary measures to strengthen accounting information disclosure supervision.

    First, it is necessary to eliminate institutional distortion from the source and strengthen the construction of internal control of enterprises.

    Secondly, strengthen the supervision and supervision of the practice quality of accounting firms. And impose strict sanctions on their illegal practitioners and institutions. Such as fines, suspension of practice, and revocation of practice qualifications. And make announcements, etc., and at the same time straighten out the entrustment relationship. Instead of direct entrustment by the enterprise, and the information user directly entrusting and paying the fees. So that the firm can practice independently and get rid of the influence of the unit under trial.

    Strive to improve and perfect the financial indicator system.

    Ways to improve existing financial analysis. Given the deficiencies and defects of financial indicators, the financial indicator system should be further improved. According to the different characteristics of each industry, different indicator systems can be established for different industries. In addition to financial indicators, there are also non-financial indicators. Moreover, there must be an analysis method suitable for the index system. And the mathematical analysis method can be appropriately introduced to solve the shortcomings of the current analysis method and improve the effectiveness of the analysis.

    Further, strengthen the professional quality of financial personnel.

    Financial data is becoming more and more complicated, and analysis technology is constantly improving. It is necessary to further improve the quality of financial analysts.

    First of all, to improve the professional quality of the financial team. It is required that financial analysts not have professional financial knowledge. But also master the professional knowledge of other different industries. Which will help to improve the effectiveness of financial analysis;

    Secondly, it is necessary to improve the morality of the financial team Quality level, to ensure the fair and objective position of financial analysts in their work. Finally, to strengthen the supervision of financial analysts to ensure that the results of financial analysis are fair and objective.

    With the further improvement of the domestic market economic system. The financial system management of enterprises tends to be institutionalized and standardized. Under the background of the market economy, the production and operation activities of enterprises are facing multiple challenges. Financial analysis is very important for the management of enterprises. Therefore, doing a good job in corporate financial analysis can provide valuable decision-making information for enterprises. So that enterprises can maintain a long-term competitive advantage.

    Financial analysis role in financial management with method function Image
    Financial analysis role in financial management with method function; Photo by Sincerely Media on Unsplash.
  • What is Financial Analysis? Meaning Objectives Types

    What is Financial Analysis? Meaning Objectives Types

    Financial analysis refers to an assessment of the viability, stability, and profitability of a business, sub-business, or project. What is Financial Analysis? Meaning, Objectives, and Types. It is performed by professionals who prepare reports using ratios that make use of information taken from financial statements and other reports.

    Explanation of each of the Content, What is Financial Analysis? Meaning, Objectives, Types, and Tools.

    Financial analysis is the evaluation of a business to determine its profitability, liabilities, strengths, and future earnings potential. A wide variety of techniques may be utilized to assess an organization’s financial viability including the most common methodologies of horizontal analysis, vertical analysis, and ratio analysis. Impact of Big Data Analysis on CPA Audit.

    Most analytical methods involve the company’s financial statements, internal or external audits, and investigations. Also, Financial analysis is a critical aspect of all commercial activity. As it provides actionable insights into the organization’s health and future potential. Not only does this information provide investors and lenders with critical data that may affect the price of stocks or interest rates. But these reports also allow company managers to gauge their performance on expectations or industry growth. From a management point of view, financial analyses are critical to the success of the company. Because they highlight weaknesses and strengths that directly affect competitiveness. Don’t forget to read the Cost of Capital.

    Meaning of Financial analysis:

    An analysis of financial statements is the process of critically examining in detail accounting information given in the financial statements. For analysis, individual items are studied, and their interrelationships with other related figures are established. The data is sometimes rearranged to have a better understanding of the information with the help of different techniques or tools for the purpose. Analyzing financial statements is a process of evaluating the relationship between parts of financial statements to obtain a better understanding of the firm’s position and performance.

    The analysis of financial statements thus refers to the treatment of the information contained in the financial statements in a way to afford a full diagnosis of the profitability and financial position of the firm concerned. For this purpose financial statements are classified methodically, analyzed, and compared with the figures of previous years or other similar firms. The term ‘Analysis’ and ‘interpretation’ are closely related, but a distinction can be made between the two. Analysis means evaluating the relationship between the components of financial statements to understand the firm’s performance in a better way.

    Various account balances appear in the financial statements. These account balances do not represent homogeneous data so it is difficult to interpret them and draw some conclusions. This requires an analysis of the data in the financial statements to bring some homogeneity to the figures shown in the financial statements. Interpretation is thus drawing inferences and stating what the figures in the financial statements mean. Interpretation is dependent on the interpreter himself. The interpreter must have experience, understanding, and intelligence to draw correct conclusions from the analyzed data.

    Objectives of Financial analysis:

    Analysis of financial statements is made to assess the financial position and profitability of a concern. Analysis can be made through accounting ratios, fitting trend lines, common size statements, etc. Accounting ratios calculated for many years show the trend of the change of position, i.e., whether the trend is upward or downward, or static. The ascertainment of the trend helps us in making estimates for the future. Keeping in view the importance of accounting ratios the accountant should calculate the ratios in the appropriate forum. As early as possible, for presentation to management for managerial control.

    The main objectives of the analysis of financial statements are :

    • to assess the profitability of the concern;
    • to examine the operational efficiency of the concern as a whole and its various parts or departments;
    • to measure the short-term and long-term solvency of the concern for the benefit of the debenture holders and trade creditors;
    • to undertake a comparative study with one firm with another firm or one department with another department; and
    • to assess the financial stability of a business concern.

    The different users and decision makers to achieve the following objectives:

    Assessment of Past Performance and Current Position:

    Past performance is often a good indicator of future performance. Therefore, an investor or creditor is interested in the trend of past sales, expenses, net income, cash flow, and return on investment. These trends offer a means for judging management’s past performance and are possible indicators of future performance. Similarly, the analysis of the current position indicates where the business stands today.

    For instance, the current position analysis will show the types of assets owned by a business enterprise and the different li­abilities due to the enterprise. It will tell what the cash position is and how much debt the company has to equity. And how reasonable the inventories and receivables are.

    Prediction of Net Income and Growth Prospects:

    The financial statement analysis helps in predicting the earning prospects and growth rates in the earnings. Which are used by investors while comparing investment alternatives. And other users are interested in judging the earning potential of business enterprises.

    Investors also consider the risk or uncertainty associated with the expected return. The decision-makers are futuristic and are always concerned with the future. Financial state­ments which contain information on past performances are analyzed and interpreted. As a basis for forecasting future rates of return and for assessing risk.

    Prediction of Bankruptcy and Failure:

    Financial statement analysis is a significant tool in predicting the bankruptcy and failure probability of business enterprises. After being aware of the probable failure, both managers and investors can take preventive measures to avoid/minimize losses. Corporate management can effect changes in operating policy, reorganize financial structure or even go for voluntary liquidation to shorten the length of time losses. In the accounting and finance area, empirical studies conducted have suggested a set of financial ratios which can give the early signal of corporate failure.

    Such a prediction model based on financial state­ment analysis is useful to managers, investors, and creditors. Managers may use the ratios prediction model to assess the solvency position of their firms and thus can take appropriate corrective actions. Investors and shareholders can use the model to make the optimum portfolio selection and to bring changes in the investment strategy to their investment goals. Similarly, creditors can apply the prediction model while evaluating the creditworthiness of business enterprises.

    Loan Decision by Financial Institutions and Banks:

    Financial statement analysis stands used by financial institutions, loaning agencies, banks, and others to make sound loan or credit decisions. In this way, they can make the proper allocation of credit among the different borrowers.

    Financial state­ment analysis helps in determining credit risk, deciding the terms and conditions of the loan if sanctioned, interest rate, maturity date, etc.

    Tools of Financial Analysis:

    Financial Analysts can use a variety of tools for analysis and interpretation of financial statements particularly to suit the requirements of the specific enterprise. Explanations of the Tools of Financial Analysis, The principal tools are as under:

    1. Comparative Financial Statements
    2. Common-size Statements
    3. Trend Analysis
    4. Cash Flow Statement
    5. Ratio Analysis
    6. Funds Flow statements

    Note: Tools of Financial Analysis – the tool of contents explanation later in these articles.

    Types of Financial Analysis:

    There is a myriad of techniques that can be used to analyze the performance of a commercial enterprise. But the most common methods use the following strategies:

    Horizontal Analysis:

    This method uses past performance as a baseline metric for the success of the company. There are variations in this method that may use some number of years as a standard. For example, if the company has been in existence for some time, the two years prior may use as a comparison. If the company is relatively new, it is common to use the initial year as a baseline and plot performance to it.

    Vertical Analysis:

    Also known as component percentages, this type of analysis compares the profits to assets, liabilities, and equities. This method is generally helpful when comparing a large number of similar companies. The limitation of this method is that it often does not weigh factors that impact future viability appropriately, like long-term partnerships, and one-time losses or investments.

    Ratio Analysis:

    This method analyzes various aspects of the company’s financial health. For example, a current ratio is the comparison of assets to liabilities. This type of analysis is extremely popular due to the analyst’s ability to choose two key features of businesses to analyze. Many analysts utilize this type of analysis to support their evaluations of organizations even if conventional analytical methodologies may not be as positive. The weakness in this type of analysis is that if the two characteristics stand poorly chosen, an unreliable estimation of financial viability may produce.

    Stock Price Movement:

    This technique relies on analyzing the performance of the company’s stock rather than its financial health. In essence, this method uses the financial markets as an analytical tool. Various methods may use to evaluate the stock’s performance including enlarging or narrowing the window of evaluation, comparison to similar companies, and trend analysis. There are some serious drawbacks to this technique. If the markets are relying on inaccurate data or analytical methodologies, they may be pricing stocks higher than their actual value. Stock analyses often ignore the company’s intrinsic sustainability to profit from stock price fluctuations and are unreliable foundations for establishing long-term investment relationships.

    Financial analysis is the examination of financial information to reach business decisions. This analysis typically results in the reallocation of resources to or from a business or a specific internal operation. This type of analysis applies particularly well to the following situations:

    Investment decisions by the external investor:

    In this situation, a financial analyst or investor reviews the financial statements and accompanying disclosures of a company to see if it is worthwhile to invest in or lend money to the entity. This typically involves ratio analysis to see if the organization is sufficiently liquid and generates a sufficient amount of cash flow. It may also involve combining the information in the financial statements for multiple periods to derive trend lines that can use to extrapolate financial results into the future.

    Investment decisions by the internal investor:

    In this situation, an internal analyst reviews the projected cash flows and other information related to a prospective investment (usually for a fixed asset). The intent is to see if the expected cash outflows from the project will generate a sufficient return on investment. This examination can also focus on whether to rent, lease, or purchase an asset.

    What is Financial Analysis Meaning Objectives and Types
    What is Financial Analysis? Meaning, Objectives, and Types. Image Credit from @Pixabay.
  • Explanations of the Tools of Financial Analysis

    Explanations of the Tools of Financial Analysis

    Financial analysis tools can elaborately stand defined as an assessment of, how effective the investments or funds engage by the organization or business.

    In this article, we will discuss the six important tools of financial analysis. Explanations of the Tools of Financial Analysis.

    To check the efficiency of funds used for operations, and lastly to secure debtors and claims against the business’s assets. Tools of Financial Analysis: Financial Analysts can use a variety of tools for the analysis and interpretation of financial statements particularly to suit the requirements of the specific enterprise. The principal tools are as under:

    1. Comparative Financial Statements
    2. Common-size Statements
    3. Trend Analysis
    4. Cash Flow Statement
    5. Ratio Analysis
    6. Funds Flow statements

    Comparative Financial Statements:

    Comparative financial statements are those statements that have stood designed in a way to provide time perspective to the consideration of various elements of financial position embodied in such statements. In these statements, figures for two or more periods exist placed side by side to facilitate comparison. Both the Income Statement and Balance Sheet can prepare in the form of Comparative Financial Statements.

    Comparative Income Statement

    The comparative Income Statement is the study of the trend of the same items/group of items in two or more Income Statements of the firm for different periods. The changes in the Income Statement items over the period would help in forming an opinion about the performance of the enterprise in its business operations. The Interpretation of the Comparative Income Statement would be as follows:

    • The changes in sales should compare with the changes in the cost of goods sold. If the increase in sales is more than the increase in the cost of goods sold. Then the profitability will improve.
    • An increase in operating expenses or a decrease in sales would imply a decrease in operating profit. And a decrease in operating expenses or increase in sales would imply an increase in operating profit.
    • The increase or decrease in net profit will give an idea of the overall profitability of the concern. 
    Comparative Balance Sheet

    The comparative Balance Sheet analysis would highlight the trend of various items and groups of items appearing in two or more Balance Sheets of a firm on different dates. The changes in periodic balance sheet items would reflect the changes in the financial position at two or more periods. The Interpretation of Comparative Balance Sheets is as follows:

    • The increase in working capital would imply an increase in the liquidity position of the firm over the period. And the decrease in working capital would imply a deterioration in the liquidity position of the firm.
    • An assessment of the long-term financial position can stand made by studying the changes in fixed assets, capital, and long-term liabilities. If the increase in capital and long-term liabilities is more than the increase in fixed assets. It implies that a part of the capital and long-term liabilities has stood used for financing a part of working capital as well. This will be a reflection of the good fiscal policy. The reverse situation will be a signal toward an increasing degree of risk to which the long-term solvency of the concern would expose to.
    • The changes in retained earnings, reserves, and surpluses will indicate the trend in the profitability of the concern. An increase in reserve and surplus and the Profit and Loss Account is an indication of improvement in profitability of the concern. The decrease in these accounts may imply the payment of dividends, issue of bonus shares, or deterioration in the profitability of the concern.

    Common-size Financial Statements:

    Common-size Financial Statements are those in which figures reported stand converted into percentages to some common base. In the Income Statement, the sale figure assumes to be 100 and all figures stand expressed as a percentage of sales. Similarly, in the Balance sheet, the total of assets or liabilities stands taken as 100 and all the figures stand expressed as a percentage of this total.

    Common Size Income Statement

    In the case of the Income Statement, the sales figure assume to be equal to 100. And all other statistics stand expressed as the percentage of sales. The relationship between items on the Income Statement and the volume of sales is quite significant. Since it would help evaluate the operational activities of the concern. The selling expenses will certainly go up with the increase in sales. The administrative and financial expenses may go up or may remain at the same level. In case of a decline in sales, selling expenses should decrease.

    Common Size Balance Sheet

    For a common-size Balance Sheet, the total of assets or liabilities takes 100. And all the figures are expressed as a percentage of the total. In other words, each asset stands expressed as the percentage of total assets/liabilities. And each liability exists expressed as the percentage of total assets/liabilities. This statement will throw light on the solvency position of the concern by providing an analysis of the pattern of financing both long-term and working capital needs of the concern.

    Trend Analysis

    The third tool of financial analysis is trend analysis. This is immensely helpful in making a comparative study of the financial statements for several years. Under this method, trend percentages calculate for each item of the financial statement taking the figure of the base year as 100. The starting year stands usually taken as the base year. The trend percentages show the relationship of each item with its preceding year’s percentages.

    These percentages can also be present in the form of index numbers showing the relative changes in the financial data of a certain period. This will exhibit the direction, (i.e., upward or downward trend) to which the concern is proceeding. These trend ratios may compare with industry ratios to know the strong or weak points of concern. These stand calculated only for major items instead of calculating for all items in the financial statements.

    While calculating trend percentages, the following precautions may be taken:

    • The accounting principles and practices must follow constantly over the period for which the analysis make. This is necessary to maintain consistency and comparability.
    • The base year selected should be a normal and representative year.
    • Trend percentages should calculate only for those items which have a logical relationship with one another.
    • Trend percentages should also be carefully studied after considering the absolute figures on which these are based. Otherwise, they may give misleading conclusions.
    • To make the comparison meaningful, trend percentages of the current year should adjust in light of price level changes as compared to the base year.

    Cash Flow Statement

    A cash flow statement shows an entity’s cash receipts classified by major sources. And its cash payments classified by major uses during a period. It provides useful information about an entity’s activities in generating cash from operations to repay debt, distribute dividends or reinvest to maintain or expand its operating capacity. About its financing activities, both debt and equity; and about its investment in fixed assets or current assets other than cash.

    In other words, a cash flow statement lists down various items and their respective magnitude. Which brings about changes in the cash balance between two balance sheet dates. All the items whether current or non-current that increase or decrease the balance of cash are included in the cash flow statement. Therefore, the effect of changes in the current assets and current liabilities during an accounting period in cash position. Which do not shown in a fund flow statement depicted in a cash flow statement.

    The depiction of all possible sources and application of cash in the cash flow statement helps the financial manager in short-term financial planning in a significant manner because the short-term business obligations such as trade creditors, bank loans, interest on debentures, and dividends to shareholders can be met out of cash only. The preparation of the cash flow statement is also consistent with the basic objective of financial reporting. Which is to provide information to investors, creditors, and others that would be useful in making rational decisions.

    The basic objective is to enable the users of the information to predict cash flows in an organization. Since the ultimate success or failure of the business depends upon the amount of cash generated. This objective stands sought to be met by preparing a cash flow statement.

    Ratio Analysis

    A ratio is a simple arithmetical expression of the relationship of one number to another. According to the Accountant’s Handbook by Wixon, Kelland bedboard, “a ratio” is an expression of the quantitative relationship between two numbers”. In simple language, the ratio of one number is expressed in terms of the other and can work out by dividing one number by the other. This relationship can express as (i) percentages, say, net profits are 20 percent of sales (assuming net profits of Rs. 20,000 and sales of Rs. 1,00,000), (ii) fraction (net profit is one-fourth of sales), and (iii) proportion of numbers (the relationship between net profits and sales is 1:4). The rationale of ratio analysis lies in the fact that it makes related information comparable.

    A single figure by itself has no meaning but when expressed in terms of a related figure. It yields significant inferences. Ratio analysis helps in financial forecasting, making comparisons, evaluating the solvency position of a firm, etc. For instance, the fact that the net profits of a firm amount to, say, Rs. 20 lakhs throws no light on its adequacy or otherwise. The figure for net profit has to consider other variables. How does it stand for sales? What does it represent by way of return on total assets used or total capital employed?

    In case net profits

    They show in terms of their relationship with items such as sales, assets, capital employed, and equity capital. And so on, meaningful conclusions can draw regarding their adequacy. Ratio analysis, thus, as a quantitative tool, enables analysts to draw quantitative answers to questions such as. Are the net profits adequate? Are the assets being used efficiently? Can the firm meet its current obligations and so on? However, ratio analysis is not an end in itself. Calculation of mere ratios does not serve any purpose unless several appropriate ratios analyze and interpret.

    The following are the four steps involved in the ratio analysis:

    • The selection of relevant data from the financial statements depends upon the objective of the analysis.
    • Calculation of appropriate ratios from the above data.
    • Comparison of the calculated ratios with the ratios of the same firm in the past, the ratios developed from projected financial statements or the ratios of some other firms, or the comparison with ratios of the industry to which the firm belongs.
    • Interpretation of the ratio.

    Funds Flow statements

    The term ‘flow’ means movement and includes both ‘inflow’ and ‘outflow’. The term ‘flow of funds’ means the transfer of economic values from one asset or equity to another. The flow of funds stands said to have taken place when any transaction makes changes in the number of funds available before happy the transaction happens the effect of the transaction results in the increase of funds. It calls a source of funds and if it results in the decrease of funds, it knows as an application of funds.

    Further, in case the transaction does not change funds, it stands said to have not resulted in the flow of funds. According to the working capital concept of funds, the term ‘flow of funds’ refers to the movement of funds in the working capital. If any transaction increases working capital. It stands said to be a source of inflow of funds and if it results in a decrease of working capital. It stands said to be an application or outflow of funds.

    Explanations of the Tools of Financial Analysis
    Explanations of the Tools of Financial Analysis Image Credit from @Pixabay.
  • 10 Problems in Business Financial Analysis Example

    10 Problems in Business Financial Analysis Example

    This Essay article Discussion the 10 Problems Existing in Business Financial Analysis Example. Due to the rapid changes in the operating environment of businesses, the diversification of demand, goal orientation and analysis methods, and the participation of multi-department and multi-level personnel, some businesses do not pay attention to financial analysis, financial analysis cannot identify needs, positioning is unclear, and the Guiding the future, failing to find benchmarks for comparison, not considering risks, ignoring capital costs, not incorporating non-financial indicators, lacking dynamic analysis, and not analyzing the overall ten major problems.

    Here are the articles to explain, the 10 Problems Existing in Business Financial Analysis Example!

    The process of solving these problems is the process of emancipating the mind, raising awareness, changing functions, identifying the position, and serving the development strategy of the business’s accounting work. You may also like to know about ERP systems in Financial Management Essay.

    Introduction

    Business financial analysis example refers to the professional analysis of the production, operation, and financial activities of the business according to the different purposes of information use, starting from the financial point of view, comparing the objectives and benchmark indicators, revealing the differences between the results of the activities and the objectives, and exploring the driving factors for the differences. , the process of proposing alternative solutions.

    Due to the rapid changes in the operating environment of businesses, the diversification of demand, goal orientation, and analysis methods, as well as the participation of multi-department and multi-level personnel, some businesses have some problems in financial analysis. This paper puts forward ten common questions, hoping to inspire the financial analysis work of businesses.

    The following 10 common problems in business financial analysis example below are;

    Problem 1: Emphasis on accounting and light on financial analysis.

    At present, China is still in a period of economic transition. On the one hand, due to market and own reasons, some investors’ investment decisions and managers’ management decisions seldom rely on financial information support, resulting in an insufficient demand for financial information from users.

    On the other hand, due to corporate accounting standards and institutional adjustments Frequently, to keep up with the changes, the accounting personnel of most business fails to properly handle the relationship between the adjustment of corporate accounting and accounting work, service, operation, and management, and spend a lot of time and energy on learning new standards, new systems and adjustments.

    In the accounting system and accounting information system, there is little time for financial analysis, so it is difficult to provide effective financial information products for business decision-makers through financial analysis. Under the circumstance that accounting stands handled by the standards imposed by the state. And the demand and supply of businesses for financial analysis are insufficient. Most businesses still emphasize accounting and neglect financial analysis.

    Problem 2: I can’t find the demand, and I don’t know who to serve.

    In reality, some corporate financial personnel do not know or fully understand the needs of relevant parties for accounting work, which makes them unclear who the accounting work should serve. It reflects in the financial analysis that they are not clear who should provide financial services. Analyze products and what products should offer.

    The financial departments of these companies do not use to connect with business units. And stand used to operating from the headquarters, positioning the department as a condescending functional department of the headquarters, not knowing the “customers” of financial analysis, and unwilling to provide personalized financial services for business departments. need. One mode of financial analysis goes all over the world, and only one financial analysis product produces. Business Financial Analysis Example reports are professionally obscure and difficult to understand.

    Problem 3: The positioning is unclear and the function is unclear.

    Some businesses have an unclear understanding of the positioning and function of financial analysis, unilaterally attach importance to business financial analysis examples, analyze very carefully, and the problems prompted by the analysis results are also in place. However, after the analysis, there is no more. They mistake financial analysis as the core of strategy execution analysis rather than strategy and strategic action plans. As a result, more and more problems stand found in financial analysis. And the role of financial analysis seems to be more and more important. But the company is still taking the old road, and the strategy execution may deviate from the target, or there are many difficulties.

    Problem 4: Only examine the past, not guide the future.

    Affected by the manager’s controlling thinking habits, some businesses stand accustomed to financial analysis and inspection of the activities that have stood completed, unchanged, and have resulted in the past, but cannot analyze and communicate based on the past, combined with the present, and focus on the future. Financial analysis that does not serve the future will only find past problems and be content with what has existed achieved.

    In the collection and processing of information. The financial analysis of these businesses is mainly based on internal and static information. And rarely uses dynamic environmental information provided by external competitors. So the financial analysis results cannot stand used for dynamic adjustment of corporate strategies. Guidance and help, then it is unknown whether it is Sunshine Avenue or thorny bushes that go down this road.

    Problem 5: I can’t find a benchmark, I don’t know the pros and cons.

    Because there is no strategy, the strategy is not clear. Or the strategy has not existed and transformed into an executable standard. Some companies are not clear about the industry competition. Do not find or find external benchmarks, and do not analyze or analyze their strengths and weaknesses. There are no opportunities and threats. Internally, there is a lack of a clear marching line and stage goal to reach the strategic goal. And it is not even clear which stage the company has reached.

    The result of not being able to find an external benchmark is accustomed to self-comparison. Accustomed to comparing the company’s plan, compared with the same period in the past. Whether there is a problem with the plan and the past or the current problem, is unknown. If there is no correct comparison, there will be no real motivation, and the correct direction cannot be found.

    Problem 6: Does not consider risks, or is too conservative.

    Some businesses lack risk awareness and do not conduct risk analysis in decision-making. In the past, they were lucky and courageous. They never considered or rarely considered risks in financial analysis, and did not make risk adjustments to the analysis results. As a result, the decision-making level of the business exaggerates its capabilities. Likes to impact small probability events, and cannot see the abyss ahead.

    When the risk becomes a loss, the business has fallen into a situation where it is impossible to recover from redemption. Due to the lack of a correct understanding of risks, some businesses are afraid of risks, or lack a risk management system and a risk responsibility system, can’t see the opportunities hidden in the risks, and miss the development opportunities, so that the backwardness will be eliminated.

    Problem 7: Excluding capital costs, affects efficiency.

    Some businesses have deep pockets and large stalls, especially some monopoly businesses. Project analysis and internal accounting do not take into account the cost of capital occupation. And the business units that occupy a large amount of capital in the business are a burden to contribute. To become bigger, such businesses sometimes acquire a large number of low-profit businesses regardless of capital cost. Although these businesses have been profitable for many years. The return on net assets is much lower than the market interest rate. Occupying a lot of resources of shareholders and society to operate inefficiently.

    Problem 8: Emphasis on financial indicators and light on non-financial indicators.

    Although the assumption of monetary measurement provides the convenience of processing corporate information for accounting work. It also tends to make some companies only focus on the results and ignore the process. Some companies focus on the analysis of financial indicators and neglect the analysis of non-financial indicators. The process of analysis is from large results to small results; only numerical results are obtained. But the connotation of the numbers is not clear, and the driving factors for the results can never be found. And no problem-solving is involved in an action plan.

    Businesses based on value management tend to reduce costs and strengthen asset structure and other more accessible goals. They often ignore the influence of many external uncontrollable factors. They are difficult to measure in monetary terms and omit some non-monetary external strategic information. The response to threats and opportunities is slow; the internal evaluation is only based on financial indicators. And the new business with core competitiveness that is related to the long-term development of the business is rejected.

    Problem 9: Used to use static analysis, lack of dynamic analysis.

    Some businesses are accustomed to using static thinking, static business development strategy, static market environment, static production and operation plan, and static employee needs and abilities to conduct static analysis of businesses. These companies seldom pay attention to external and internal changes, seldom dynamically revise and improve their strategic planning, and seldom adjust their action plans. Therefore, it is difficult to keep up with the times, keep pace with the times, and keep pace with the times.

    Problem 10: Without dissecting the whole, the individual analysis is insufficient.

    Some large businesses and large groups are getting bigger and bigger, and their financial analysis is becoming more and more macroscopic. They did not conduct a financial analysis of each branch center, business process, and operation unit of the business like dissecting sparrows, so they could not analyze the strategic contribution of individuals, so it was difficult to tap and cultivate the core competitiveness of the business; If the analysis is not objective and in place, it will lead to the phenomenon of inefficient crowding out the resources of strategic units and efficient divisions, and the inefficiency of the overall resource allocation of the business will ultimately affect the overall efficiency of the business.

    Conclusion

    The above 10 problems exist more or less in the financial analysis of most businesses, and the process of solving these ten problems will also be to emancipate the mind, raise awareness, change functions, identify positioning, and serve the development strategy of businesses in the accounting work of business. At the same time, it is also a process for businesses to correctly use financial analysis and scientific and refined management.

    10 Problems Existing in Business Financial Analysis Example Image
    10 Problems Existing in Business Financial Analysis Example; Photo by Mimi Thian on Unsplash.
  • Enterprise Risk Management and Macroeconomics Analysis PDF

    Enterprise Risk Management and Macroeconomics Analysis PDF

    Analysis of Enterprise Risk Management and Macroeconomics PDF; Under the background of macroeconomic operation, with the continuous changes in the market environment; the risks faced by enterprises’ business activities are becoming more and more complex. Whether it can effectively manage and control the potential risks existing in its business activities based on the existing material conditions; and technical support has become a more concerning issue for enterprise managers.

    Here are the PDF articles to explain, the concept of Enterprise Risk Management and Macroeconomics Analysis!

    Risk management is the process of identifying, evaluating, evaluating, and controlling risks in the production and operation activities of various economic and social units. It aims to effectively manage the identified and evaluated risks through the optimization and combination of various risk management techniques. , control, to achieve the goal of ensuring the healthy development of the unit with the minimum cost and maximum. In the context of macroeconomic operation, with the continuous changes in the market environment, the risks faced by enterprises’ business activities are also becoming more and more complex. Whether it can effectively manage and control the potential risks existing in its business activities based on the existing material conditions and technical support has become a more concerning issue for enterprise managers.

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    Enterprise Risk and Risk Management;

    Risk is the uncertainty between the purpose of production and the outcome of labor; and, there is no unified view in the academic community on the definition of risk. In American economist Frank Knight’s 1921 book “Risk, Uncertainty, and Profit”, Knight conducted a pioneering study of risk and proposed that “risk is a measurable uncertainty” This classic definition. There is a certain difference between this definition and the concept of risk at the general cognitive level. From the perspective of economic entities, no matter whether the uncertainty of risk is measurable or unmeasurable; there is no doubt that it is closely related to the loss of economic entities.

    In addition, when different scholars define the concept and connotation of risk; there are problems such as different levels of cognition and different research angles; so there are certain differences in the conclusions, but they can summarize in the following viewpoints; Risk is a The uncertainty of the possible future results of an event; risk is the uncertainty of the occurrence of losses, and risk is the size of the loss; also, the risk is the size of the loss and the possibility of occurrence; risk is the result of the interaction of risk components. Risk management is a management process that minimizes the possible negative impact of potential risks during business operations or project development.

    The “Enterprise Risk Management – Overall Framework” promulgated by COSO in September 2004 defines enterprise risk management as follows: Implemented by an enterprise’s board of directors, management, and others, applied to strategy formulation and throughout the enterprise, to identify potential matters that may affect the development of the enterprise, manage such matters, and bring them within the enterprise’s risk tolerance, and then serve the enterprise. The realization of development goals provides certain guarantees.

    ERM framework;

    According to the ERM framework proposed by COSO, enterprise risk management should include the following points:

    First, risk management is a series of behaviors permeating the production and operation activities of an enterprise; and it is commonly found in daily management; second, management behaviors are caused by Personnel at all levels of the enterprise; who is responsible for implementation, and relevant managers need to take the overall goals of the enterprise; as the starting point to accurately identify the risks existing in business activities; thirdly, when formulating risk management plans; the top management of the enterprise needs to fully consider the risks of different strategies.

    Related risks; Fourth, risk management should consider various business activities at the headquarters level; and from a global perspective to ensure that management behaviors run through the entire enterprise; Fifth, risk management needs to accurately identify potential risks that may affect the normal production, operation, and development of the enterprise. Based on various risk assessment and identification methods, the risk should control within the range that the enterprise can bear; sixth, the information and results obtained from the entire risk management activities should be able to provide the board of directors and management of the enterprise with relevant enterprise goals. realization of the guarantee.

    The main types of enterprise risk;

    For enterprise risk management in our country, relevant literature has concluded that the business risk of an enterprise can analyze from the perspectives of system risk and individual risk. In terms of system risk, uncertainties in policies, interest rates, market supply and demand; and purchasing power will all have a certain impact on the normal production and operation of enterprises. In terms of individual risks, the main risks faced by enterprises are the risks of capital value, opportunity cost, income cash flow, future operating expenses, time, and holding period.

    Furthermore to the above classification methods, some opinions generalize the business risk of enterprises as policy risk (whether the macroeconomic regulation and industrial policy guidance issued by the state in the corresponding field will have an impact on the entire industry or a certain type of product or business), financial Risks (whether the enterprise itself has difficulties in capital turnover or bankruptcy caused by poor management and management), market risks (whether the products or services developed by the enterprise are marketable in the market, and whether they are competitive in the market), legal Risk (whether the enterprise has the risk of serious economic losses due to related contract traps such as fraud, breach of contract and infringement of intellectual property rights), team risk (whether there are employee conflicts within the enterprise, especially the core team, and the loss of excellent talents) Five categories.

    Enterprise risk management under macroeconomic operation;

    The management organization structure is not perfect;

    In the context of macroeconomic operation, the implementation of enterprise risk management requires the support of professional talents in the final analysis, and a good organizational structure is an important prerequisite for ensuring the stability and good operation of the risk management plan, and also has a positive effect on the improvement of the enterprise risk management mechanism. For small and medium-sized enterprises, the leading layer of risk management is generally managers.

    In addition to initiating risk management and strategic planning; it also plays an important role in the identification of business risks and the implementation of treatment measures. Under the background of the gradual deepening of modern enterprise management concepts and the frequent occurrence of enterprise risk events; although the management of most enterprises has realized the importance of risk management and related organizational structures; and has clarified the necessity of bundling the implementation of enterprise strategy and risk management;

    However, in the practice of constructing organizational structure; many enterprises still face the problems of confusion of management structure; and unclear division of authority and responsibilities of internal management personnel. In addition, small and medium-sized enterprises have some deficiencies in resisting risks and building a sound management system. At present, the risk management of Chinese enterprises is facing more severe challenges.

    Under the macroeconomic background;

    The current defects in the design of the management organization structure of Chinese enterprises are mainly concentrated in the lack of independent risk management departments; the lack of standardized risk management system operating procedures; and the job responsibilities and attribution of personnel engaged in enterprise risk management.

    The division of departments is unclear, and the topics that bear the corresponding risks are not clearly explained. In addition, due to factors such as imperfect organizational structure and lack of necessary constraints on risk management activities, the risk management practices of some enterprises are prone to the following problems: risk or risk event that has occurred, which is manifested as “inaction”.

    Based on the above analysis, the lack of professionals who can undertake risk management responsibilities; the excessive pursuit of immediate interests in the risk management and control process; and the imperfect organizational structure are the main drawbacks of enterprises in managing the organizational structure; and they are also urgent problems that need to be solved.

    Risk management stands separated from internal control;

    Internal control is an important way for modern enterprises to govern the internal environment. At this stage, the theoretical circles have different definitions of internal control; but there is no doubt that internal control is the process of creating a reasonable guarantee for an organization to achieve its business goals.

    According to the explanation given by my country’s Banking Regulatory Commission; the internal control system of a commercial bank is a systematic procedure, policy, or plan formulated and implemented by a commercial bank to achieve its operation and management objectives, to effectively identify and monitor relevant risks. , evaluation and control of dynamic processes and mechanisms.

    Relationship between internal control and risk management;

    From this level of analysis, there is a certain relationship between internal control and risk management:

    First, internal control needs to drive by the correct identification and control of risks by enterprise managers, and is a necessary link for enterprises to achieve comprehensive risk management goals; second, Comprehensive risk management covers all elements and objectives of internal control. Linking enterprise risk management with internal control is an effective way to ensure the safe and healthy development of the enterprise.

    In the process of practical attempts, the internal control of modern enterprises has gradually changed from the traditional concept of risk management mode that simply avoids business losses. Comprehensive risk management can create certain value and benefits. Because of the close connection between internal control and risk management, many enterprises have actively tried to reform their internal control.

    However, as far as the actual effect is concerned, due to the influence of many factors; a considerable number of enterprises still fail to organically combine internal control and risk management in their management activities. Analyzing the reasons, it is mainly related to the lack of necessary awareness of risk control by managers in key positions in internal control and risk management activities and their lack of deep understanding of the connection between the two.

    Suggestions on Strengthening Enterprise Risk Management;

    Build a sound risk management system;

    Under the current macroeconomic background, building the “three lines of defense” for comprehensive risk management is a management strategy adopted by most state-owned enterprises and other large enterprises in the construction of risk control and internal control systems. The “Three Lines of Defense” can play a positive role in the control of business risks.

    For general small and medium-sized enterprises, relevant decision-makers can also consider starting from the aspects of clarifying leadership responsibilities, setting up full-time internal control positions, formulating feasible risk control strategies to implement a hierarchical and hierarchical risk management system, and then ensuring the entire risk control work. successfully launch.

    From the perspective of internal control, the construction and improvement of the internal control system is an important part of the modern enterprise management concept. Strengthening the internal environmental governance of the enterprise and gradually improving the internal control system is the new development situation.

    New requirements;

    Because of the problem of “mechanism” in the construction of risk control system in some enterprises and the excessive reliance on the risk control experience obtained by other enterprises, the designer of the risk control work plan should start from three perspectives:

    • First, ensure that the audit department in the organizational structure of the enterprise Occupies; its due position and focuses on strengthening the authority and also independence of internal audit work.
    • Second, independent regulatory authorities need to take into account property risks and operational risks; and aim to improve the overall risk management level of the enterprise and improve the internal environment of the enterprise.
    • The third is to start from the vertical, supervise and manage the whole process of production and operation of the enterprise, and also pay attention to the evaluation of various potential events.

    The existing management experience has also confirmed that starting from the three stages of pre-intervention, in-process tracking, and post-event evaluation; the potential risks of business activities can discover in time so that corresponding preventive measures can take; as soon as possible to avoid business risks faced by enterprises and enhance their ability to Social value.

    Improve the risk management organization;

    In the practice of enterprise financial risk control; a sound management organization is a basic condition for the entire risk control work. To ensure the smooth progress of the risk control work and the perfect combination of the risk control work; and other management activities, the management of the enterprise needs to attach great importance to it. Reasonable structure of management organization, especially for functional departments related to risk control work.

    According to the actual requirements of risk control work, qualified enterprises should establish a management department dedicated to enterprise risk control services, and continuously improve the governance structure in the process of practice. From the perspective of improving the risk management organization, to improve the existing management structure; the management of the enterprise needs to recognize the importance of the members of the board of directors; and the board of supervisors independent of the general management organization in the enterprise risk control.

    In addition, it is necessary to pay attention to the key indicators of the enterprise. In the process of production and operation of the enterprise; the key indicators refer to the financial risks that can be accurately reduced; and, then brought about by the key financial indicators of the enterprise in the process of preventing the financial crisis of the enterprise. capital utilization and capital turnover. At the same time, companies also need to have good credit; so that they can use corporate funds to gain an advantage in market competition and achieve more stable development.

    Use financial instruments to achieve sound development;

    Enterprise risk management is a systematic and dynamic supervision process; which involves the process of risk identification, quantitative assessment, processing, and supervision. It is a reliable way to promote the sound development of enterprises to comprehensively use the existing risk control methods to practice the functions of planning, organization, and control to ensure the smooth development of business activities.

    In the practice stage, to ensure the quality of risk control work; in addition to considering the economy of risk control technology; and the relationship between risk control costs and operating benefits, relevant managers also need to use some tools and risk control strategies to scientifically conduct business risks. avoid. Taking the risk accident database as an example, to improve their risk control capabilities; some enterprises actively try to establish a risk accident database; to identify potential risks and also avoid similar events through the comprehensive analysis results of previous risk events.

    From the perspective of application effects, the establishment of a risk event database can provide an important tool for early warning of business risks. In the financial industry under the influence of macroeconomics; the avoidance of operational risks has always been a key topic discussed the industry. Focusing on the theme of healthy and benign development, relevant companies have actively carried out practical attempts to improve financial planning capabilities and risk control capabilities with advanced financial tools.

    For other enterprises, there is a view that entity enterprises should divide into three categories; production and processing enterprises, end customers, and traders. According to the differences in risk exposures faced by various types of enterprises in their operation and also management practices, corresponding financial tools should use to solve practical problems. Problems or practical difficulties can better help relevant enterprises to overcome the development difficulties.

    Other things;

    Under the development trend of diversification, internationalization, and financialization, Chinese enterprises are facing a certain crisis of innovation and development; which will inevitably increase the business risk of enterprises. To effectively deal with such risks, relevant companies urgently need to introduce reliable financial instruments to transfer risks in procurement, production, sales, trade, and other links.

    Risk management is an important way to ensure the healthy development of an enterprise. It needs to improve promptly in combination with the theories; and, also methods of enterprise risk management under the current macroeconomic operation. However, judging from the current situation of enterprise risk management in my country; the relevant management needs to objectively analyze their shortcomings in terms of awareness and ability; also, pay attention to avoid problems such as excessive reliance on the risk control experience of other companies and advanced risk control technology.

    On this basis, managers need to closely combine the characteristics of the enterprise; actively build a sound risk control system and organizational structure; and flexibly use the existing financial tools to help the enterprise overcome the difficulties faced by the risk control work.

    Concept of Enterprise Risk Management and Macroeconomics Analysis PDF
    Concept of Enterprise Risk Management and Macroeconomics Analysis PDF; Image by Wokandapix from Pixabay.