Financial knowledge that must be mastered in the workplace

Financial knowledge that must be mastered in the workplace

What do you think of financial statements?

The financial statement consists of a main table and an attached table, divided into four tables and a note:

1. Balance Sheet

2. Income statement

3. Cash flow statement

4. Statement of changes in owners' equity

Step 5 take notes

All the business and business activities of an enterprise can be reflected in three financial statements, which is the basis of everything. (The predecessors said: Novices generally read the first two tables, and professional analysts may read the notes directly, which is very shocking. )

1. Balance Sheet

Meaning: It is a report that reflects the source and use of funds of the company at a specific moment.

Available information:

A. Economic resources held by the company

B. Debt undertaken by the company

C. solvency of the company

D. Rights and interests enjoyed by company owners

E. Characteristics of the company's business model

Function: It represents the "strength" and "financial resources" of the enterprise, so it generally depends on the balance sheet, which can reflect the basic financial situation of the enterprise at a certain point.

2. Income statement

Meaning: a statement reflecting the relationship between the company's sales revenue, cost and profit in the past period of time.

Available information:

A. reflect the company's profitability

B. Reflect the composition of the company's profits

C. reflect the tax situation.

D. Forecast the future development trend of the company

The net profit of an enterprise comes from three aspects: a. operating profit, b. investment income and c. net non-operating income and expenditure.

Function: It reflects the "ability" of an enterprise. Whether an enterprise can make good use of resources to create wealth depends on the profitability of the income statement. However, the profit reflected in the income statement does not necessarily represent the "real money" earned by the enterprise, so we need to understand the ability of the enterprise to generate cash flow in the profit process through the cash flow statement.

3. Cash flow statement

Meaning: Provide information on the inflow and outflow of cash, cash and other valuables in a specific period.

Available information:

A. reflect the relationship between net income and cash balance

B. Forecasting future cash flows

C. Assessing the ability of enterprises to obtain and use cash

D. Determine the interest paid by the enterprise

E. Dividends and debt maturity

F. changes in the company's portfolio of productive assets

Function: Metaphor is usually the "blood" of an enterprise, which embodies its "vitality". At the same time, we can also know the cash flow of enterprise financing activities and investment activities through it. General investment institutions pay more attention to cash flow statement (because it is difficult to falsify). The cash flow statement is also regarded as a sign of the healthy operation of the enterprise, which further represents the production and operation of your enterprise.

4. Statement of owners' equity

Meaning: The total assets of the company are the assets owned by the owners after deducting liabilities. The greatest significance of the statement of changes in owners' equity is to reveal how the assets owned by shareholders change with the operation of the company, and what are the specific reasons for the changes.

Function: Different from balance sheet, income statement and cash flow statement, all items in the statement of changes in owner's equity are not "unique". But scattered in other forms, from the point of view of a report worker, it feels like a patchwork form, reflecting all the old rights and interests separately.

Step 5 take notes

Meaning: The financial statements themselves cannot or are difficult to fully express the supplementary explanations of internal and external items.

Function: It can be understood that financial statements are movies and notes are film reviews. It's easy to miss details or not understand the expression of many shots just by watching movies. Film criticism is to help you interpret the content of movies. Everything you don't understand, which is not explained in detail in the film, is in your notes.

The financial statements can be summarized in one sentence: positive cash flow, positive profit, increased assets and stability! !

Focus on financial knowledge

1. Cost and tax (to distinguish the relationship between cost and expense)

Costs are carried forward in proportion to income, and expenses are incurred in the current period. The two are not the same thing. Therefore, the loss of personal loans is actually an occupation of the company's resources. We can also pay attention to the rationality of cost collection and whether the expenses are included in the cost in order to improve our performance.

Many financial personnel may not know a lot, but many HR may have some understanding, because wages are taxable. For example, year-end bonus tax planning and executive tax planning are one of the ways for HR departments to create value, and tax planning for equity incentives is an unavoidable hurdle for HR to formulate long-term incentive plans.

Tips for learning tax:

Tax knowledge is actually very professional knowledge, and many financial personnel don't quite understand it. I only know the basic principle of value-added tax, but I don't know the tax. How do you know that your family has paid more tax? The best way is to communicate with peers more, check the comprehensive tax burden of your own family, and then ask others' families. Ask the reason after the comparison, and you will know more or less. Of course, it is also a way to deal with the relevant personnel of the tax bureau.

2. Monetary funds: it depends not only on the balance, but also on the amount incurred. The inflow and outflow of cash every month is very important for AD and HR to understand the business.

3. Payable staff salaries: This is the biggest expense concentrated in the human resources department. The boss often asks the HR department to "reduce costs and increase efficiency", that is, the analysis and control of HR labor costs.

4. Fixed assets: Although the amount of fixed assets is relatively large, we don't need to pay special attention. Just let the management do a good job of registration, and don't let the assets idle and waste.

5. Budget management: This is very, very important. In fact, it is very difficult to control finances. If there is no budget, everything will be in chaos. Therefore, the government must make a good budget. With a budget, there is a basis and an extra hurdle.

6. Internal control: The core of internal control is standardization and streamlining, and everything is handled according to the system. But in practice, we must pay attention to: the division of labor should be scientific, one person should be private, two people should be public, and departments should cooperate and contain each other. This is the best state of internal control.

7. Current account: Pay attention to credit granting and aging here. There should be a customer aging analysis table every month. Those that exceed the maturity and credit are risks and benefits, which should be paid special attention to. For businesses, if they don't accept it for a few days, they can get benefits from it. For finance, it's all workload, and everyone has selfishness, so the boss can only rely on himself.

8. Inventory: Inventory is also an asset, and idleness is also a waste. Here are two reminders. First, the inventory ledger and inventory count are really important, so don't take it lightly. The second is to pay attention to the problem of goods, which is actually a kind of creditor's right. At the same time, the money will go out. As long as there is an account period, it is necessary to calculate interest and settle it in time.

9. What is VAT?

Definition: VAT = tax on earned money (appreciation). Generally speaking, in addition to the company's internal behavior (such as paying wages, etc. ), everything else should be handed in. At the same time, with different tax rates, the amount of tax paid is different, but small-scale taxpayers are different (VAT exemption, 3% collection rate), but the annual VAT sales reach the standard (> 5 million), and must be filed as general taxpayers.

Why is the special VAT invoice so important?

Whether it is a special VAT invoice or an ordinary VAT ticket, there is not much difference for the drawer, and the tax is the same. For the party who wants to invoice, the special ticket can be deducted, but the general ticket cannot be deducted. Without deduction, it will have a huge impact on the cost of enterprises.