Friday, 24 July 2015

Budget analysis

The analysis of the budget is intended to represent the company's activity in terms of economic, financial and equity. The analysis of the budget is called static when taking into account the study of the indexes; and dynamic when it analyzes the flows.
The first aim of the analysis of the budget is verified, made through a general overview on the progress the company, the economic balance of the undertaking should be obtained by complying with two conditions:

    
the revenues from the business activity should cover costs and ensure a return on capital invested by the shareholders of the company.
    
the company as a whole should have a financial capacity.
When it comes to corporate budget often he means the financial statements to be drawn up by the company once a year and made public. The financial statements consists of the following documents:

    
Balance Sheet
    
Income Statement
    
Notes

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