How to describe the financial situation of an enterprise

At present, financial statements mainly include: balance sheet, income statement (including profit distribution statement), cash flow statement and accounting statements. These statements are the basic basis for financial institutions to comprehensively analyze the financial situation, operating results, profit distribution, cash flow and other operating conditions of enterprises and units, and to judge their profitability, payment ability and debt repayment ability. We introduced the bank's review in "How Bank Credit Personnel Analyze Enterprise Accounting Statements". Here, I would like to introduce to the financial personnel how to explain the financial situation of the enterprise to the credit personnel according to the main subjects of the accounting statements in the way of auditing. I. Balance Sheet (1) Current assets 1. Monetary funds include cash, bank deposits and other monetary funds. Bank credit personnel generally pay attention to the total amount of monetary funds of enterprises: this excess shows that enterprises have too many cash assets and low asset utilization rate; Too little may lead to insufficient temporary funds. Under normal circumstances, credit officers tend to be cautious about the large amount of monetary funds of enterprises. First, the utilization rate of enterprise assets may not be high. Second, because enterprises have a large amount of monetary funds, they have doubts about the motives of enterprises to borrow from banks. Therefore, enterprise financial personnel should put forward corresponding reasons for the temporary increase of monetary funds, such as seasonal payment, fund-raising and enterprise fund-raising. 2. Short-term investment. Short-term investment generally refers to the investment that an enterprise can recover in a fiscal year. Because of its strong liquidity, it is regarded as cash management. Generally, the amount of this theme will not be too large. If the amount is large, the reason should be explained. Bank loan officers will still doubt the motives of corporate loans. After all, the interest rate of bank loans is higher than that of national debt. ) 3. Notes receivable. Under normal circumstances, the domestic circulation is mainly bank acceptance bills, and the funds are guaranteed by the confirming bank, which is less risky; If the enterprise has a large commercial acceptance bill, it should explain its source and the reason why the bill can be paid on time. 4. Accounts receivable. This subject is the first subject that bank loan personnel are interested in, and we often study it in combination with the operating cash flow in the cash flow statement. (1), the continuous change situation, the bank staff tried to analyze the distribution situation and sales policy of enterprise products through the change of accounts receivable. A. There are generally three possibilities for drastic reduction: a. Enterprise products are transformed, products are widely recognized by the market, supply and marketing are booming, and income is greatly increased; B, enterprises increase the recovery of accounts receivable, recover cash, and increase cash or inventory at the same time; C, the enterprise will write off or transfer a large number of accounts receivable, accompanied by the increase of expenses. B, substantial growth, there are generally two possibilities: a, the product demand market has undergone positive or fundamental changes, enterprises have changed their previous sales policies, and a large number of credit sales, at this time, income growth is slow; B, in order to expand market share, enterprises supply products to consumers in the form of credit sales, at this time, the income increases in proportion to the main body. Enterprise financial personnel should combine the marketing policy of enterprise products, give bank credit personnel a reasonable explanation for the drastic change of accounts receivable, and let them see the development side of the enterprise. (2) the composition of the amount of accounts receivable. General bank personnel analyze the top ten accounts receivable customers of the enterprise, and confirm the possibility and efficiency of accounts receivable recovery by analyzing whether they are related to the enterprise and the customer's previous commercial credit. (3), accounts receivable aging composition. It is mainly to confirm the amount of accounts receivable for more than two years and assess the provision for bad debts of enterprises. Credit personnel generally believe that the possibility of recovering accounts receivable for more than two years is close to zero. 5. Other receivables. Due to the full performance of listed companies in the past two years, bank credit personnel began to pay close attention to other receivables of enterprises, because this subject has become a regulator of enterprise income and a channel for some affiliated enterprises to jointly use funds. The analysis method of bank credit personnel is consistent with accounts receivable, but the main purpose is to find out whether enterprises use this subject to transfer funds. Enterprise financial personnel should provide credit personnel with a large number of details of the enterprise subject, indicating that the main purpose of the subject is in line with financial regulations, and the enterprise does not occupy funds. 6. Prepaid account. Credit personnel are more concerned about the whereabouts and time of advance payment, in order to prevent enterprises from transferring funds through this subject. Enterprises may wish to provide details. 7. Inventory. Bank credit personnel pay close attention to the sharp change, composition and inventory time of inventory. Enterprise personnel should separate raw materials, auxiliary materials, semi-finished products and finished products, and indicate the inventory time, so as to show the credit personnel that the inventory ratio of the enterprise is reasonable and special, and there is no large backlog caused by production errors, and there is no behavior of fabricating enterprise profits by turning costs less. (ii) Long-term investment. Long term investment. Investment object, shareholding ratio (absolute and relative), accounting method (cost, equity), whether the income is recorded, etc. And the amount should be paid attention to (according to the company law, the foreign investment of an enterprise cannot exceed 50% of the net assets of the enterprise). If the enterprise's long-term investment can't produce benefits, the bank credit personnel will doubt the purpose of long-term investment, because since the enterprise has good benefits and lacks funds, why should it invest funds in an inefficient project? At this time, the enterprise should explain to the bank personnel from the aspects of long-term investment methods (such as technology, fixed assets and brands) and strategic business purposes. (3), fixed assets 9, fixed assets.