FOREXIN Business Analysis VS Financial Analysis, What Are the Connections and Differences?

Mondo Workplace Updated on 2024-02-03

Under the prosperity of this prosperous era, with the transformation and development of Shanghai Zhouche, the old financial exploration has been difficult to meet the needs of the fine governance of the monarchs. As a result, more and more businesses are gradually shifting their financial exploration to business exploration. However, in practice, many financial directors and directors are difficult to understand the difference between their financial exploration and business exploration.

Isn't business exploration a financial exploration? There is already financial exploration in the business, why do you want to mention the general description of business exploration? What is the difference between an operational exploration report and a financial exploration report?

The relationship between business exploration and financial exploration is inseparable. Between the two, we can solve it in four ways.

1. Mutual containment and blending.

When a financial person conducts financial exploration, he should not only look at a financial indicator, but also combine the essence of the business. When financial exploration goes deep into the front line of business, insight into the story behind the data extends to operational exploration.

The beginning of business exploration starts with business and ends with financial exploration. To carry out business exploration, it is necessary to be able to abstract the exploration results into the impact of financial indicators, because when the business prospector reports, the actual financial data is also fallen.

For example, if a manufacturing business loses an old customer, the subordinate reports the situation to the manager.

Xiao Wang said: "In the arms of an old customer investment competitor, the task in the second half of the year may be difficult to complete, and it is necessary to open up new customers." ”

Xiao Li said: "An old customer belongs to a competitor, resulting in a decrease in turnover and a decrease in profit of 50% in the second half of the year. ”

If according to Xiao Wang's words, but he loses a guest, the manager may think: "I have a hundred customers, how can I care about this one guest?" However, if according to Xiao Li's words, the loss of this customer will lead to a big reduction in profits, what will the manager think?

This is also the operation of exploration. If the exploration results cannot be based on financial indicators and the impact of income and profits is not reported to the superiors, it is difficult to attract the attention of the superiors, and it is difficult to obtain the necessary resources and support.

Therefore, the first priority of business exploration and financial exploration is to contain and blend with each other. When conducting financial exploration, you must force yourself to understand the essence of the business; When conducting business exploration, it is important to consider how this will affect the company's finances.

Financial exploration is used to discover problems, while business exploration is used to conduct special analysis of problems arising from financial exploration.

Financial exploration has a fixed format and content. Since the 60s of the last century, there has been a unified standard formula for the indicator ratios of financial statements, regardless of industry. The business exploration is amorphous, and the business exploration conducts a special analysis of the problem deviations and major deviations found in the financial exploration.

For example, a company is shipping more than budget. Assuming that the freight and revenue are seven points in the budget, in fact it is nine points, which is beyond the budget deviation. Looking at the income statement, sales are not hindered, gross profit is also good, and there is no abnormal selling expenses, but the freight exceeds the budget.

At that time, there is no need to analyze the business exploration one by one, but only to carry out special analysis for the problem of freight.

Financial exploration to find problems, while operational exploration solves problems. Financial exploration is biased towards behind-the-scenes operations, and reports after discovering problems, and is not responsible for solving problems. Gai generally believes that solving problems is the job of business people. However, business exploration is different, and if it is not responsible for solving the problem, all the above work will be in vain.

In the case of business exploration, the first step is to collect data, then conduct interviews about data discrepancies, and verify the interviewee's statements to confirm whether they are true or comprehensive. This process is the way to discover the real cause, or the root cause of the problem.

After finding the root cause, it is necessary to work with the business personnel to solve the problem. After the completion of these things, the business exploration report can be formed, and the business exploration can be completed.

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