On Application Of Finance Analysis To Enterprise Management

With the increasing development of enterprise, finance management is becoming more important part of enterprise management. More and more enterprises require analyze and research the status of production and finance order to fulfilling the requirements of management themselves. Furthermore, many companies and individuals which has benefit relation with these enterprises, such as investor, creditor, government and so on, also hope to access and analyze the information of management and finance of these enterprises with a view of benefit themselves in order to make right decision.Aiming at the above questions, this paper elaborates how to apply finance analysis to enterprise management with practice of accountant. Indices of finance analysis is categorized into four class 1) the analysis index of cash flux; 2) the analysis index of sinking ability; 3) the analysis index of working ability; 4) the analysis index of profit ability. With actual case, the author presents function of these indices for enterprise finance management. Cash flux is treated as important part of finance analysis instead of profit because the former reflect more real status of enterprise than the latter. Furthermore, according to much experience in finance analysis, the author presents a simple computing method of the balance point of profit and loss, which is fit for enterprise.This paper puts the theory of finance analysis and practice together, comprehensively analyzes situation of enterprise, and provides manager for a lot of information and scientific evidence. It makes finance analysis really become a part of decision-making of enterprise, and acts as an important role of enterprise management, help manager to deal with many difficult problem of managing enterprise.