Financial analysis is to evaluate and analyze the business performance and financial situation of an enterprise. The following is my real estate financial analysis paper, welcome to read for reference!

Abstract: As a new industry, the property management company is highly unified and has a wide range of services. The research on the management of property companies in China started late, and there is no accounting mechanism specifically for property companies, so its application needs to be strengthened. This paper expounds the purpose, application and main methods of financial analysis of property companies, so as to better promote the financial analysis of property companies and enterprises.

Keywords: financial analysis, management of property companies

1, preface

At present, with the rapid development of China's real estate industry, the pace of property development is also accelerating, and the environment of property management is becoming more and more mature. As a new industry in the process of China's economic development, the development of property management companies also presents both opportunities and challenges. Property management company is one of the components of modern enterprises, so its financial management level is equivalent to that of other enterprises. In the process of property management, financial analysis is the most important, and the result of financial analysis is directly related to the decision of management.

2. The purpose and application of financial analysis of property companies.

Financial analysis is of great significance to enterprises, which is related to the decision-making of company management and related interest groups. For the property management company itself, a systematic analysis of financial data is helpful for the company to find various problems in the development process in time, so as to put forward countermeasures in time and better improve the existing situation. The relevant interest groups of property companies include owners, management of property companies and creditors. For the owners, we can monitor the service quality of the property company through some financial data. For company management, financial analysis is of greater significance. By monitoring assets, liabilities and cash flow, we can know the company's income and expenditure, profitability and future development direction. For creditors, through financial analysis, we can know the repayment ability of enterprises, which is convenient for their decision-making direction. In short, the purpose of financial analysis of property companies is reflected in the following aspects.

First of all, we can evaluate the financial revenue and expenditure of the company in a certain period of time. The financial analysis of property companies covers a wide range, involving all aspects of the company's operations and services. When the company makes major decisions, financial analysis can provide data support, which plays a direct role in correct decision-making and decision-making budget. At the same time, it also helps to compare the data in the process of implementing new decisions, so that enterprises can adjust their development direction in time. Secondly, the management level of property management companies can also be reflected through the analysis of assets and operations, and the income and expenditure of activities can be evaluated through the analysis of specific activities. By summing up, the next similar activity will reduce unnecessary expenses, thus improving the management level of the property management company. At the same time, the financial analysis of the property company can also understand the profitability of the property company.

3. Main methods of financial analysis of property companies.

The financial analysis methods of property companies are carried out according to different classification standards, which can usually be classified according to objects, elements, time, purpose and mathematical methods adopted.

3. 1 Classification according to analysis purpose

According to the different purposes of analysis, the financial analysis of property management companies can be divided into three categories: predictive analysis, controlling analysis and summative analysis. Forecast analysis occurs before the start of the project business activities, such as the start of the contract or the signing of the contract conditions. Its main function is to predict and analyze the expected economic benefits of the project, the expected operating results of the enterprise and the expected effect of a certain business decision of the company in advance. Regulatory analysis occurs in the middle period, such as the period of project management activities and the contract period. The main function of this analysis is to control the process of economic activities, reveal the contradictions among them, and take corresponding countermeasures. Summative analysis generally occurs at the end of the period, such as the end of the fiscal year, the end of the quarter, the end of the month or the end of the project operation, the end of the contract, etc. Its main function is to sum up experience and evaluate.

3.2 Classification according to accounting elements

First, analyze the balance sheet. The balance sheet is an accounting statement that reflects all assets, liabilities and owners' equity of a company on a specific date. Through the analysis of the balance sheet, we can see the distribution of the company's assets and liabilities and the composition of the owner's equity, so as to evaluate whether the company's capital operation and financial structure are normal and reasonable; It is also helpful to calculate the profitability of the property management company, evaluate the company's operating performance and the company's ability to take risks.

Secondly, the income statement is analyzed. By analyzing the income statement of the property management company, the operator can know the profits generated by the company in a specific time. The company can know the financial income and expenditure of the enterprise through the income statement, and find out the advantages and disadvantages of the enterprise operation through the analysis of income, expenses and profits, so as to better control the income and expenditure costs in the next stage and how to strive for greater benefits for the company by improving the quality of property services.

Finally, the cash flow statement is analyzed. Understand the future development trend of the company through the analysis of cash flow.

However, with the continuous development of enterprises, it is far from enough to analyze the above three aspects. Some special methods are needed to analyze the financial data of enterprises to ensure the efficient development of enterprises.

3.3 Classification according to analysis methods

At present, there are three financial analysis methods commonly used by enterprises: longitudinal analysis, comparative analysis and comprehensive analysis.

Among them, the vertical analysis method refers to calculating the proportion or structure of each item in the report, reflecting the relationship between the items in the report and the overall situation and its changes, and then understanding whether the company's operation has developed and progressed, so as to understand the degree and speed of the company's development and progress; Comparative analysis is a method to compare the homogeneous financial indicators of companies in different periods and different spaces, determine their differences and evaluate the financial indicators of property companies. This method can show the changing trend of financial indicators, so as to evaluate the operating performance of property companies. Comprehensive analysis method makes up for the shortcomings of vertical analysis method and comparative analysis method, which is more conducive to the overall management and operation of the company. Combining the two methods, we can not only find out the development characteristics and shortcomings in the company's operation, but also help the company find the correct development direction.

In actual financial analysis, comparative analysis is widely used, among which ratio analysis is one of the more commonly used methods. In order to reflect the company's operating conditions more comprehensively, vertical analysis and comparative analysis are essential. At present, China's economic development puts forward better requirements for efficiency, and the development of property companies should also follow the market rules. By integrating all kinds of resources, it is the fundamental purpose of financial analysis of property companies to give full play to their functions and satisfy owners and investors.

References:

[1] Hair gold powder. On the application of financial analysis indicators in small and medium-sized enterprises [J]. Value engineering

[2] Qiu Youliang. Perspective the future development trend of the company through financial analysis indicators [J]. Audit and financial management.2012.06

[3] Li Miaohua. On the financial internal control and financial risk prevention of property companies [J]. Finance .2012.22

Starting with the purpose and requirements of financial analysis of property management companies, this paper summarizes the main methods of financial analysis in practical work, so as to help property management companies better manage their finances.

Keywords: financial analysis methods of property management companies

I. Introduction

With the rise and development of China's real estate industry, property management companies have mushroomed and become a new force in the process of China's socialist market economy construction. With the increasing attention of property management companies to modern financial management, many property management companies have begun to pay attention to the analysis of their own financial data. The financial analysis of property management companies is of great significance in the whole financial management system, and the data and conclusions formed through financial analysis can provide information for the management decisions of the company's management and related interest groups. Generally speaking, financial analysis is an important tool for enterprises to carry out financial accounting, which can effectively help enterprises sum up experience, find problems, make reasonable predictions and improve efficiency in business management activities. It can be said that every company's financial analysis involves analyzing the present situation and planning the future, so does the property management company. The financial statements of property management companies need to adopt different financial analysis methods for different users, and the focus of analysis is also different. The financial analysis of property management companies mainly focuses on business activities such as property management, house repair and community comprehensive services. , mainly using accounting, statistics and other related information to compare the data generated by business activities in different periods. Most of them use comparative analysis methods to find out the problems and root causes, and then take measures to correct them, so as to continuously improve the financial management level of property management companies.

Second, the main purpose and application analysis of financial analysis of property management companies

Financial analysis is of great significance to the management of property management companies and external interest groups. For property management companies, only by analyzing their own financial data deeply and systematically can we find out the problems existing in their own management process in time, know what areas have room for improvement, and make correct management decisions. For external stakeholders, because of their different purposes and needs, the requirements for financial information are also different. Specifically, for the owners, it is mainly through some financial data to objectively understand whether the service quality of the property management company has a high standard. For the management of a property management company, it is necessary to judge the company's long-term and short-term solvency, profitability, cash flow and the overall trend of future development through financial analysis, so as to evaluate its comprehensive management ability. For investors, it is mainly to understand the profitability of property management companies; For creditors, it is necessary to focus on indicators related to the solvency of property companies such as asset-liability ratio and quick ratio. It can be seen that it is very important for property management companies to meet the needs of internal management and external stakeholders when conducting financial analysis. On the basis of China's accounting standards and relevant financial reporting regulations, we should reflect the information needed by many parties as much as possible. Generally speaking, the specific purpose and application of financial analysis of property management companies mainly include the following aspects.

(1) Evaluate the financial status of the company at a specific time.

The most direct financial analysis is to reflect the composition of assets, liabilities and owners' equity of an enterprise in a certain period, and on this basis, to evaluate the operating efficiency, solvency and operating risk of the enterprise. For property management companies, financial analysis needs to be able to cover every key link of the company's operation, management and service process, and make a reasonable prediction of major projects according to the financial situation and make a good cost budget; In the specific implementation process, we also pay attention to follow-up observation, analysis of new situations, information transmission between departments within the company, financial comparative analysis before and after work, and observation of indicators affecting the profit level of enterprises and abnormal fluctuations.

(2) Evaluate the management level of the property management company.

The management level of a property management company can be reflected in the process of financial analysis. Generally speaking, the management process of a property management company is a process of gradually obtaining benefits by using its own assets. The management level is largely reflected in the management level of assets. Analyzing the management level of assets can help property management companies to evaluate their own asset management and operation, thus reflecting the overall management level of the company. For example, property management companies need to pay close attention to the comparison between the expenditure of purchasing, putting into use, maintaining and keeping assets and the final economic effect, mainly analyze whether the investment of assets is appropriate and whether there are unnecessary losses caused by poor management, and then evaluate the profitability of corresponding assets, so as to continuously improve the asset management level of property management companies.

(3) Measure the profitability of property management companies.

The management objectives of property management companies are varied. Judging from the actual operation process of the majority of property management companies, the profits obtained by relying solely on property management-related services are actually not high. However, any company takes profit as its most fundamental goal, and property management companies are no exception. In view of this, property management companies also need to pursue their own new profit growth points, because the company's profitability is not only very important to the company's management and investors, but also of great significance to creditors and investors. With the general improvement of living standards of China residents, the profitability of property management companies often affects people's choice of property management companies. People want to choose a property management company with high management level and advanced management concept.

The purpose of financial analysis of property management companies is to evaluate the company's financial status, operating results and management level, and provide an important basis for the company's management and stakeholders to make economic decisions.

Third, the main methods of financial analysis of property management companies

The financial analysis methods of property management companies are divided according to different emphases. Specifically, there are two main methods.

(1) classified by accounting elements.

1, balance sheet analysis. Balance sheet analysis is a static analysis method, which is mainly based on the data of balance sheet for objective evaluation. The balance sheet is a comprehensive reflection of the company's operating conditions at a certain point in time, and it is a more comprehensive item in the financial statement system. Through the analysis of the balance sheet of the property management company, we can intuitively see the company's long-term and short-term solvency, profitability and potential business risks.

2. Analysis of income statement. The financial analysis of the profit and loss of property management companies mainly reveals the operating results of property management companies in a certain period of time. Property management companies need to rely on the income statement to understand the development and changes of the company's financial situation, master their own profitability, and find out the advantages and disadvantages of the company's operation in a period of time through the analysis of basic data such as income, expenses and profits, so as to make efforts in controlling costs, improving service quality and broadening service areas.

3. Analysis of cash flow statement. For the financial analysis of modern enterprises, the concept that cash is king is no stranger. The cash flow statement can reveal the information of the company's cash inflow and outflow in an accounting year, including important links such as financing, investment and distribution, and reveal the situation and reasons for the company's cash flow changes. In-depth analysis of cash flow statement can help the company to measure its ability to obtain cash, understand the direction of possible changes in the main business areas of the company in the future, and thus deepen the understanding of the company's financial analysis. ? With the continuous updating of modern enterprise management concepts, many enterprises begin to realize that the simple analysis of balance sheet, income statement and cash flow statement can no longer meet the needs of enterprise management, and some specific analysis methods need to be applied to actual financial data.

(2) Classification by analytical methods.

Generally speaking, the most commonly used financial analysis methods are horizontal analysis, vertical analysis and comprehensive analysis. Each analysis method has its specific scope and characteristics.

1, transverse analysis. Horizontal analysis is also called comparative analysis. Simply put, it is a parallel comparison of several items in the statements of property management companies in the same period, reflecting the relationship between the data. The most common component analysis and ratio analysis are widely used in horizontal comparison.

2. Longitudinal analysis. Vertical analysis is mainly to compare the financial statements or ratios of property management companies for many years, reflecting the changing trend of the financial situation of property management companies during this period. It is a trend analysis method, in which ratio analysis and index analysis are the most widely used.

3. Comprehensive analysis. In addition to the horizontal analysis and comprehensive analysis mentioned above, modern property management companies pay more and more attention to comprehensive analysis. Although horizontal analysis and vertical analysis can objectively reflect the operating conditions and changing trends of enterprises, there is still a certain gap in reflecting the overall management level of the company, and the two methods have their own emphasis. If we can combine them, we can make up for the defects and shortcomings of relying on any one of them alone. In view of this, in order to reflect the overall situation of the company's operation more comprehensively and systematically, it is necessary to combine the above two analytical methods organically for comprehensive judgment. The analysis results can not only reflect the advantages and disadvantages of the company's current operation, but also help the company find the direction of improving management. At present, the most famous comprehensive analysis method is "Dupont analysis method".

To sum up, property management companies need to analyze the data in financial statements and systematically evaluate the company's financial status, operating results and management level. At present, China's accounting system and company law have clear requirements. Property management companies must provide balance sheets, profit and loss statements, cash flow statements, bills and financial statements, and the financial analysis of property management companies is developing in a scientific and standardized direction.

Four. conclusion

In actual financial analysis, horizontal analysis is often the most widely used analysis method, especially the ratio analysis method has become a special analysis method in many financial analysis textbooks. Generally speaking, horizontal analysis and vertical analysis can reflect the management level of property management companies from different aspects. With the continuous development of China's economy, the national economy has gradually shifted from the stage of pursuing speed to the stage of pursuing efficiency. Property management companies should conform to the trend of modern enterprise management mode, combine their own actual situation, make rational use of various resources, provide better services for owners and win more objective returns for external investors. This is also the most fundamental motivation for property management companies to conduct financial analysis.

References:

[1] Gao, Yang Guoxing. Analysis of financial report of group property management. Modern Property 20 10(9).

[2] Ma Hongmei. Discussion on common problems in financial management of property service enterprises. Urban Development, 2008( 1 1).

[3] Zhou Xia. Reflections on the financial management of real estate enterprises in China. Friends of Accounting 2007( 1).

;