Why do you have to make a report? How boring it is to make a report! Is that really the case? In fact, it is still the same sentence, "There is no shortage of beauty in life, what is lacking is the eyes that find beauty." Don't believe it? Take you for a walk.
1. "Famous sayings and epigrams" in the preparation of the report
First of all, an accountant who doesn't want to make statements is not a good accountant. You know: there was no report in the world, but when there were more people in need, there was a report. Of course, there is specialization in the industry, and there is specialization in the industry. What is making a report? I write reports. Who am I afraid of?
Secondly, you are bound to encounter many difficulties in compiling the report. You will sigh: oh, my god! The night gave me a pair of black eyes, but I used them to find the uneven figures in the report. Why are my eyes full of tears? Because I haven't finished writing my report.
Third, as an accountant, it is a bounden duty to prepare statements. If relatives and friends in Luoyang ask each other, tell them that I am writing a report. Looking up, I found it was moonlight, lowering my head and sorting out the report. Looking for him in the crowd, suddenly looking back, the man was compiling a report. It is not difficult for a person to report once, but it is difficult for a lifetime. That is the hardest thing!
Finally, have courage and confidence. Give me a pen and I can finish the whole report. The real accountant dares to face the change of leadership requirements and the change of accounting system. Make your own report and let others comment!
2. The "truth" of the three main tables
The balance sheet is divided into left and right parts, and an identity of "assets = liabilities+owners' equity" is used to express the beauty of "symmetry", just like two groups of big cabinets with some small drawers hidden inside. The income statement usually needs to be viewed from top to bottom. It follows the principle of "income-cost = profit" to lock whether to make money or not, showing the beauty of "height". The cash flow statement is divided into three parts, which reveal the source of funds through business activities, investment activities and financing activities. Where did all the money go? Do you have pocket money? It shows the beauty of "health".
Teacher Zheng Yongqiang said: If the enterprise is regarded as a person, the balance sheet is like the skeleton of the human body and is the foundation. The bigger the skeleton, the better, but the stronger it is. Enterprises should not blindly pursue the expansion of asset scale, but should strive to improve asset quality. The income statement is like a muscle. Muscles should be strong, explosive and lasting. The growth of enterprises should be profitable. Cash flow is like flowing blood. Only with real money can you live. As the saying goes, "if you are not afraid of making money, you are afraid of chain break."
The balance sheet reflects the strength of the enterprise, and whether the asset structure, debt scale and capital accumulation have a good "foundation"; The income statement reflects the profitability of the enterprise, whether it has done anything in the operating results and whether it has "face"; The cash flow statement reflects the vitality of the enterprise and tests whether the liquidity of the enterprise's funds is enough to live a "life".
The balance sheet is a static statement, which reflects the financial situation of the enterprise at a certain moment, such as a photo taken with a camera at a certain moment; The income statement is a dynamic report, which reflects the operating results of an enterprise in a specific accounting period, such as video recorded by a camera; The cash flow statement is also a dynamic statement, which reflects the increase and decrease of cash in a certain period. Theoretically, its function should be very powerful, right? Think of it as a mobile phone, which combines the functions of a camera and a video camera, but what I fear most is that there is no traffic. Once "cut off", all the functions of taking photos and videos will disappear.
The left side of the balance sheet shows the structure and scale of resources, and the right side shows who the rights and interests of resources belong to; The left side focuses on strategy, management and efficiency, while the right side emphasizes interests, distribution and relationships.
The income statement can tell you whether the products or services of an enterprise sell well and make money. Whether a product or service is good or not depends mainly on two points: "whether it is easy to sell" and "whether it is profitable". Selling well means selling well, customers like it, and making money is the key to the survival of enterprises. Selling well does not make money, the more you sell, the more you lose; Making money is not easy to sell, and enterprises can't live without selling. Enterprises should not only "sell well" but also "make money" when paying attention to products.
The cash flow statement has three parts: the first part, the cash flow of operating activities represents the "hematopoietic" function of the enterprise; The second part of cash flow from investment activities represents the "bloodletting" function of enterprises, and enterprises can appropriately "donate blood" when they have sufficient funds to make good reserves for the future; The third part is the cash flow of fund-raising activities, which is the function of blood transfusion and the ability of enterprises to raise funds from outside. "Hematopoiety" seeks development, "blood donation" seeks service, and "blood transfusion" seeks survival.
3. The report project "looks like a mountain"
There are many items in the report. In order to understand them well and try to survive, I will just say a few.
As an accountant, remember that "everything is for money"! Treasury currency, cash, bank deposits, bank deposits and statements are all included in monetary funds; Money has not been received, accounts receivable; If the payment has not been paid, it shall be recorded as accounts payable; Pay first, then get the goods, and pay in advance; Collect money first, then give goods, and collect accounts in advance; When you spend money on things, money becomes inventory, fixed assets and low-value consumables; When the money is invested, it becomes a long-term equity investment; The money received from investment is included in paid-in capital and capital reserve; Money is borrowed, that is, short-term borrowing and long-term borrowing; If you earn money, record surplus reserves and undistributed profits; The money that should be given to employees is the wages payable to employees; What should contribute to the country is to pay taxes and fees.
Among the report items, accounts receivable are the least cost-effective, and Tianyuan Manganese owes several hundred million yuan for electricity. There is no temper when collecting bills (bills receivable). If you don't accept them, there will be risks. If you accept them, you will try your best to exchange them with humility. Advance payment is easy, not too much; If other receivables are "trash cans", then other payables are "cornucopia"; Investing in real estate is an "adopted" son. After all, we must recognize our parents. The long-term prepaid expenses of diaosi are actually expenses, which are simply added to the balance sheet.
Health is the most important "fixed asset" and age is "accumulated depreciation". Working overtime and staying up late naturally becomes accelerated depreciation.
People in love should turn "projects under construction" into "fixed assets" as soon as possible, saving money and saving face.
4. The "disconnection" between statements
The report items in the balance sheet are arranged from top to bottom according to liquidity, so the first line is "monetary funds", which also shows that cash must be king in enterprise management! In order to confirm this conclusion, the last line of the cash flow statement should also return to this figure. This is technology!
The income statement depends on how the profit is obtained. An enterprise focuses on its main business and earns profits through its main business income, which is "raising chickens and laying eggs"; If the profit earned is earned by investing in other enterprises, this is called "borrowing chickens to lay eggs"; If the profits are obtained through financial subsidies and tax rebates, it is tantamount to "picking up an egg." Under normal circumstances, if enterprises want to live longer, they still have to consider professional concentration, and "raising chickens and laying eggs" is reliable.
Over the years, Huawei has pursued "profit income, cash flow profit, and non-capitalization." In a word, the relationship between the three tables is connected. I wrote this rule into the Guiding Opinions on Further Strengthening the Financial Management of Collective Enterprises on 20 19. Some people may not understand it, but some people will pay attention to it. The relationship between income, profit and cash is: income is not equal to receiving money, and expenses are not equal to paying; Profit is calculated, and cash is calculated. "Calculation" can have different algorithms, so you can get completely different profit levels; However, there is only one way to point, and you must have money to point.
What is the intention of capitalization or expensiveness? This passage makes it very clear that the fraudulent statements of listed companies are mainly to find ways to capitalize the expensed things and stuff them into the balance sheet, so that the balance sheet will swell and the assets will be puffy. The falsification of statements of private enterprises is mainly to find ways to deal with capitalized things at high prices and stuff them into the income statement, making the income statement pale and haggard, as if it had not eaten for decades.
It is more practical to explain the relationship between three tables by falling in love: at the beginning of falling in love, women are most concerned about men's cash flow statement; After chatting for a while, with feelings, women began to care about men's income statement, trying to understand the difficulty of men creating profits; When it comes to marriage, it mainly depends on the man's balance sheet, which is the most important of all financial statements.
Theoretically speaking, it should be difficult to analyze and judge the financial indicators of an enterprise, but through historical comparison, trend analysis, industry benchmarking and other means, some clues can still be found, and these "clues" may be the "unique" place of this enterprise. Following this line of thinking may also expose some problems. For example, does the company's sales and profit growth have quality growth or no quality growth? Is sales growth bought or endogenous? Is the profit created by the main business or the profit gained from the sale of real estate? Does profit bring cash flow or is there no cash support? These analyses are methodical. Mastering the appropriate methods, coupled with handy application, will usually get twice the result with half the effort. The professionalism of the so-called method lies in efficiency and directness first, and then the problem can be explained "to the point" and the essence can be cut through the phenomenon.
? ? 1. The value of the enterprise
Zheng Yongqiang's Let Financial Reports Speak: Fortune 500 CFOs Help You Read Financial Reports Easily is a thoughtful work in financial report analysis. He attributed enterprise management to three things: product, efficiency and financial resources. The three are multipliers: the value of the enterprise = product × efficiency × financial resources, which means that the enterprise can't just focus on one aspect, and a high score in one aspect will not bring huge benefits and opportunities to the enterprise. If all three indicators are the best, then the enterprise will definitely get super high scores and maximize its value. However, as long as one of the three indicators is not done well, the overall business situation may be problematic.
In this formula, the product represents the profitability of the enterprise and corresponds to the income statement. Efficiency refers to the operating efficiency of an enterprise on assets, which corresponds to the balance sheet. Financial resources represent the management of existing funds and financial leverage, which corresponds to the cash flow statement. This formula connects the three main tables, and judges the business status of the enterprise through some corresponding analysis indicators. Although I dare not say that I took the things in my bag, I will never digress from Wan Li.
Looking at products from the income statement, if there are products with good quality, high price and easy to sell, of course, they are lying down to make money. Instead, I was on pins and needles all day. Enterprise management is to choose the right products first, and then make them into "unicorns" and "moats". Huawei 5G, Hikvision and DJI innovation all have these characteristics, so the survival rate is not a problem.
From the balance sheet, the efficiency mainly depends on whether the turnover of inventory and accounts receivable is normal, whether the corresponding indicators such as total assets turnover rate, current assets turnover rate and business cycle can be "metabolized" normally, and whether it is necessary to lose weight and liposuction. Is the gait light and elegant, and your feet fly?
Looking at financial resources from the cash flow statement mainly depends on whether the cash and cash equivalents on the books are too low and whether they can support a huge body. If you are deficient in qi and blood or anemia, you must find ways to make blood and transfuse blood. You can't watch yourself die.
? ? 2. The benefits of "eating at both ends"
If the upstream material suppliers and service providers in the enterprise trust you and are willing to sell on credit or provide services to extend the payback period of accounts receivable, there may be a lot of "accounts payable" on your books; If your products are of high quality and low price, and demand exceeds supply, then downstream customers will "raise money to purchase goods", so that your books may enter some "prepayment accounts" unconsciously and effortlessly.
If an enterprise can have these two abilities at the same time, it is called "eating at both ends" There are really many such enterprises, such as Kweichow Moutai, Fuyao Glass and TSMC. Usually, such enterprises have absolute voice and negotiation ability in the upstream and downstream industrial chains, and can easily occupy the funds of suppliers and customers. Enterprises that can "eat at both ends" secretly have a mouthful of oil and a bag of splendor, but upstream and downstream enterprises are willing and afraid. The sense of existence between enterprises is usually the same as that of children in ordinary classes, and their abilities are very different.
1. Never had pricing power for products.
As a senior financial officer of a power grid enterprise, I know the operation of the enterprise very well. We have an asset-intensive power grid. In order to ensure the safe operation of 7*24 hours, a large number of technical renovation, overhaul and operation and maintenance are invested every year. We also have to shoulder the social responsibility of electrifying every village and tackling poverty, because we are the "eldest son of the country", the "pillar" and the "ballast stone". Moreover, we must go through the reform of transmission and distribution prices, and these reforms are national from beginning to end. Enterprises that completely lose the pricing power of products, all your actions depend on your boss's face!
If we can't create revenue in the form of pricing power, then this brand can't create a competitive advantage. Kweichow Moutai, DJI UAV and Valentine's Day Rose can't be regarded as commodity economy without pricing power.
2. Cash flow under pressure
Influenced by the whole social environment, enterprises in Ningxia receive bank drafts in the upper reaches of the industrial chain, so they will endorse them to power grid enterprises when paying electricity bills. Power grid enterprises usually receive bank drafts accounting for more than 80% of the electricity bills receivable, and there is little cash left after tax payment. What's more, a company has been in arrears with huge electricity bills for several months, and the cash flow that should have been paid has been stretched. Another large piece of accounts receivable can't be collected, "the house leaks in rainy days and it rains all night." Only through "blood transfusion" can we alleviate business risks, but it is followed by high asset-liability ratio and breaking through the red line. The days of insufficient blood supply are really hard!
3. Some pits that have to be faced
Today, we are faced with various reforms. With the reform, we have to face bumpy roads or pits that require courage and may not be crossed.
We have established or participated in various enterprises with mixed ownership. The investment scale of each enterprise is different, the shareholding ratio is not uniform, and the business model is different. For example, power distribution companies, comprehensive energy companies, electric vehicle companies, and four seasons technology companies all donate blood to each newly invested company, contributing real money and silver, but at present, each company has no mature business model or stable income source. If these enterprises lack "hematopoiesis", if it is only a bumpy road, then roll up your trouser legs and cross it without fear; If there are hidden pits and mines, how much energy does it take to save your life or not be hurt?
4. Comprehensively strengthen quality improvement and efficiency improvement.
Improving quality and increasing efficiency in an all-round way is the eternal theme of enterprise management, and "strong" balance sheet, "abundant" income statement and "vigorous" cash flow statement are the unremitting pursuit of enterprises.
Improving quality and increasing efficiency is different from increasing income and reducing expenditure, because in essence, it is not saving that can bring quality and increasing efficiency, but the original intention of improving quality and increasing efficiency is to improve efficiency, and improving quality and increasing efficiency is the whole connotation of "enterprise value = product × efficiency× financial resources". Therefore, the balance between the three is particularly important. In terms of products, the sales volume should go up (domestic sales and delivery), and the government does not have to worry about the price. Cost is the key to control, as long as the line loss is reduced, it is money; In terms of efficiency, the key depends on input and output, that is, whether the company can effectively control the scale of asset growth under the premise of maintaining sales growth, thus improving management efficiency. In the future, in terms of nuclear price, blind investment and scale expansion will be difficult; In terms of financial resources, we should pursue profits with cash flow, and have enough cash flow to support its normal operation and development while maintaining a reasonable asset-liability structure.
The goal of improving quality and increasing efficiency is to find a better way to lose weight, and at the same time achieve twice the result with half the effort, instead of blind people touching the elephant and rushing to see a doctor, not insatiable, but showing a strong, glamorous, intelligent and energetic tall image in constant running.
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