What are the contents of enterprise finance?

Every enterprise manager hopes that the vigorous development and economic development of enterprises are the most basic prerequisites for enterprise development. As an excellent enterprise manager, it is very necessary to know some common financial knowledge. The classification of capital sources and capital occupation used in traditional accounting has been replaced by the current applicable classification of assets and liabilities, that is, assets, liabilities, owners' equity, income, expenses and profits. These six constitute the whole of enterprise finance. To understand these financial knowledge, we must first understand the composition and relationship of these six. The details are as follows: assets are composed of fixed assets and current assets; Liabilities consist of current liabilities and long-term liabilities; Owners' equity includes paid-in capital, surplus reserve, etc. Income consists of main business income and non-operating income; Expenses include manufacturing expenses, operating expenses, management expenses, financial expenses, etc. Profit consists of items such as operating profit after deducting various expenses; Assets = liabilities+owners' equity; Owner's equity = capital+profit; Profit = income-expense; Assets+expenses (cost) = liabilities+capital+income; Asset account balance+cost account balance = liability account balance+owner's equity account balance+profit and loss account balance. Understand that the main source of financial information in financial statements is the annual financial reports of enterprises (companies owned by the public, that is, companies that publicly issue shares, should prepare these reports in accordance with legal requirements; Private enterprises don't have to). These documents include balance sheet, income statement and cash flow statement. In the annual financial report, you will find a section entitled Management Discussion and Analysis. This is an opportunity for enterprise managers to find problems and opportunities in management. Although the notes to financial statements explain the information provided by financial statements in the form of footnotes, in fact, they are as important as the financial statements themselves. These notes may reveal some important matters of the enterprise, such as important legal proceedings, changes in accounting methods, changes in the composition of senior staff, the sale and reorganization of various commercial branches, etc. How to reasonably reduce tax payment and tax reduction, just like increasing income and operating profit, increases its net profit or bottom line. Generally speaking, enterprises can achieve reasonable tax reduction in various ways. Enterprise structure Even if the economic entity is a company rather than a partnership or sole proprietorship, different types of companies have different income tax rates. When the economic subject changes from one type to another, it will also cause changes in the tax payment situation, which will further affect the income of enterprises. In addition, the tax policies or laws in the region where the company is registered will also affect the tax burden of the enterprise. Buying Timing Most accounting activities are based on accrual basis. With this method, the income from operating activities is recognized in the accounting year in which it actually occurs; On the other hand, if the income is recognized in the actual accounting year, then its accounting will follow the pay-as-you-go system. Sometimes, if the business is delayed by only one day, it will cause the problem that the revenue recognition will be moved to the next year. If you earn more profits in a certain year, the enterprise can benefit by offsetting various deductible expenses in that year, that is, effectively reducing its taxable income; On the other hand, if the profit is small, or the enterprise has written off a lot of expenses in this year, it can postpone the purchase to the next year, that is, deduct it in the next year. The timing of bad debt write-off Those accounts receivable that have actually expired but have not been recovered may sometimes be unrecoverable. Similar to the above-mentioned purchase timing, enterprises can set the time for bad debts to be written off when such deduction can bring great benefits. Depreciation The government allows enterprises to confirm the decrease in value caused by the wear and tear of equipment and real estate, thus reducing their tax payable. Generally speaking, the government can stimulate the growth of a specific industry or economy by changing the depreciation policy. Financial statement is the official document that an enterprise provides and announces the operation of an enterprise to managers and the outside world, so it is very important for an enterprise to correctly prepare accounting statements. The function of each sentence can be summarized in one sentence: 1. The balance sheet reflects the financial situation at a certain moment. 2. The income statement reflects the operating results at a certain moment, and the net profit of the last digit of the statement will be included in the profit distribution statement. 3. The profit distribution table reflects the profit distribution in a certain period, and adjusts the undistributed profit at the beginning of the period to the undistributed profit at the end of the period, which is included in the balance sheet. 4. The cash flow statement reflects the results of changes in cash and the reasons for changes in financial status.