Financial analysis is the process of evaluating businesses, projects, budgets and other finance-related entities to determine their performance and suitability. Typically, financial analysis is used to analyse whether an entity is stable, solvent, liquid or profitable enough to warrant a monetary investment.
ProKakis uses AI technology to assess your Financial Statements and Data to provide you with a comprehensive Financial Analysis that involves assessing your company’s performance and make recommendations about how it can improve going forward. Our technology analyses historical data and make projections of how your company will perform in the future. We work with Chartered Accountancy firm, EBOS Cloud Accountants to provide a detailed and meticulous analysis of your financial statements. Giving companies a clear and concise overall view of their organisation’s financial health that is critical for business leaders to make the right business decisions.
WHAT IS FINANCIAL ANALYSIS?
Financial analysis is referred as a process of understanding the risk and profitability of a company by analysing reported financial information, especially annual and quarterly reports to determine the past, current, and prospective performance of a company. It can be applied in a variety of situations to allow business leaders the crucial information they need to make critical decisions. Among the abilities required to understand and manage a business is fluency in the language of finance—the ability to read and understand financial data as well as present information in the form of financial reports.
Advantages of Financial Statement Analysis
- The most important benefit if financial statement analysis is that it provides an idea to the investors about deciding on investing their funds in a particular company.
- Another advantage of financial statement analysis is that regulatory authorities like IRAS can ensure the company follows the required accounting standards.
- Financial statement analysis is helpful to the government agencies in analysing the taxation owed to the firm. • Above all, the company is able to analyse its own performance over a set time period.
It is only one part of the overall function of finance, but it is a very important one. A company’s accounts and statements contain a great deal of information. Discovering the full meaning contained in the statements is at the heart of financial analysis. Understanding how accounts relate to one another is part of financial analysis. Another part of financial analysis involves using the numerical data contained in company statements to uncover patterns of activity that may not be apparent on the surface.