Introduction:Startup financial plan can help entrepreneurs to further validate the feasibility of the business plan. This article is an example of a startup financial analysis report for your reference only.

First, the current situation of China's small and medium-sized enterprises financial reporting analysis

China's small and medium-sized enterprises financial reporting analysis is mainly an indicator analysis. The basic financial indicators are mainly based on three accounting statements, through ratio analysis to achieve the purpose of analyzing the statements. Its indicators include profitability ratio, solvency ratio, asset management ratio. Reflecting the profitability of small and medium-sized enterprises have many indicators, usually use the main net sales rate, gross sales rate, sales during the expense ratio, net asset interest rate, return on net assets; solvency analysis is divided into short-term solvency and long-term solvency, the main indicators are current ratio, quick ratio, gearing ratio, equity ratio, interest coverage multiple. Asset management ratios are financial ratios used to measure the efficiency of small and medium-sized enterprises in asset management, mainly including operating cycle, inventory turnover, accounts receivable turnover, current asset turnover and total asset turnover. Cash flow analysis facilitates statement users to correctly evaluate the SME's ability to pay, profitability and solvency. Among them, liquidity analysis refers to the ability to convert assets into cash quickly, mainly cash maturity debt ratio, cash current liabilities ratio, and cash total debt ratio. The analysis of the ability to obtain cash refers to the ratio of net cash inflow from operations to invested resources, including the cash ratio of sales, operating cash flow per share, and the cash recovery rate of all assets; the analysis of financial resilience refers to the ability of SMEs to adapt to changes in the economic environment and to take advantage of investment opportunities, including the ratio of cash to satisfy investment and the cash dividend guarantee multiplier; the analysis of the quality of earnings refers to the interrelationship between the reported earnings and the SMEs' performance. The quality of earnings analysis refers to the correlation between reported earnings and the performance of SMEs; the indicator for the quality of earnings is the cash operating index.

China's small and medium-sized financial report analysis focuses on the analysis of financial indicators, rarely mentioned in the audit report and notes to the accounting statements analysis, which gives the managers of those units with poor operating efficiency an opportunity to take advantage of. They take advantage of the imperfect analysis of the statements, manipulation of profits, abuse of related party transactions and some false sales tactics, etc. to make the original loss-making SMEs become rich in profits. So with the development of the market economy, changes in the economic environment, small and medium-sized financial reporting analysis system must be extended to the audit report analysis, analysis of financial indicators and analysis of notes to the accounting statements.

Two measures to improve the analysis of small and medium-sized financial reporting system

With the development of the market economy, changes in the economic environment, the accounting information system is becoming more and more complex, the original analysis of the financial reporting system has been far from being able to meet the needs of the analysis of the present, and then analyze the previous analysis of the system of analysis of the existing financial reports, sometimes there will be A great deal of bias, and even draw the opposite conclusion, so it should be supplemented from the following aspects.

1. Analysis of notes to accounting statements of small and medium-sized enterprises

(1) Analysis of accounts receivable of small and medium-sized enterprises. Accounts receivable is a very important current asset in SMEs, if not practiced scientific management, it is easy to form aged bad debts, bad debts to the enterprise SMEs cause losses. Therefore, SMEs must show the aging and bad debt policy of accounts receivable in the notes to the financial report so that investors can accurately judge the asset quality and financial status of SMEs. This allows investors to analyze the reasons for the increase in accounts receivable, whether the structure of accounts receivable is reasonable, and whether the provision for bad debts is made in accordance with the regulations.

(2) Inventory analysis of SMEs. Through the notes to the financial report can clearly see the structure of the inventory, this structure can be seen in the operating conditions of small and medium-sized enterprises, if the inventory of raw materials increased, while the inventory of finished goods decreased or slightly increased, indicating that the small and medium-sized enterprises are in the growth or maturity period, sales volume is larger, and can produce higher gross profits; if the inventory of raw materials decreased, and the increase in finished goods, indicating that the small and medium-sized enterprises are in a period of recession, the product is gradually being replaced by a new product, or there is an overproduction of such a product. The only way out for such an 'SME' is to shift the production of the new product quickly. In addition, through the notes to the financial report can also learn about the provision for inventory decline, if the provision for inventory impairment is large, indicating that the recoverable amount is much lower than the cost, the inventory is likely to be obsolete or destroyed.

(3) non-operating income and expenditure analysis of small and medium-sized enterprises. Non-operating income and expenditure refers to income and expenditure not directly related to business activities, belonging to non-normal items, in the analysis of financial indicators, attention should be paid to whether or not to exclude this non-normal items, which will have to be based on the importance of the principle of the proportion of net profit relative to the proportion of the proportion of the larger that is, the importance of the exclusion should be excluded. Because it is a contingent factor, can not bring long-term gains and losses to small and medium-sized enterprises, do not exclude will affect the results of the analysis.

(4) Related party transactions of small and medium-sized enterprises. Accounting standards, small and medium-sized enterprises, especially listed companies should be disclosed in the notes to the amount of related party transactions, pricing policy, the amount of unsettled items or the corresponding proportion of the disclosure of related transactions is the most important is the pricing policy and the amount of the transaction. Related parties in order to manipulate profits, often through related parties to achieve certain objectives of the purpose.

2. Analysis of additional financial indicators for SMEs

(1) SMEs' main business cash flow rate. The main business cash rate is the ratio of cash received from the sale of goods and services to the main business income. (Main business income cash rate = cash received from the sale of goods and services ÷ main business income). This indicator can make up for the lack of sales cash ratio, when small and medium-sized enterprises in the period of rapid development, with the growth of business volume sales cash ratio is generally lower, but not the quality of earnings is not good enough, but with the growth of business volume, inventory and receivable items the natural growth of the results. The indicator is close to 117%, indicating that SMEs' product sales situation is favorable, there is a comparative advantage relative to the buyer, or SMEs' credit policy is reasonable, and the collection of debts is effective, SMEs are able to collect cash in a timely manner, to ensure the smooth turnover of production and operation, and the quality of earnings is high. On the contrary, if the indicator is low, it indicates that the sales situation of SMEs is poor, or there may be the possibility of abnormal sales and fraud, or the credit policy is not reasonable, the collection of debts is not effective, and the quality of earnings is poor. In particular, when analyzing this indicator, should also be combined with the balance sheet and income statement of accounts receivable and operating income changes in the trend, to analyze the indicator is greater than 117%, whether it is due to the small and medium-sized enterprises in recent years, sales contraction, accounts receivable in previous years to be collected and formed.

(2) the main business of small and medium-sized enterprises cash flow ratio. (1) Cash paid for main business = cash paid for goods and services ÷ cost of main business. This indicator can reflect the cash payment ability of small and medium-sized enterprises, indicating that the actual amount of cash paid by small and medium-sized enterprises for every 1 yuan of main business costs incurred. If the ratio is about 117%, it indicates that the main operating costs are basically cash-paid costs, and the SME has not formed liabilities to the seller due to purchases; if the ratio is greater than 117%, it indicates that the SME, in addition to paying for the current main operating costs, has also repaid the purchase price owed to it in the previous period, and has established a good business credit; if the ratio is much less than 117%, it indicates that there are purchases on credit and that this may put SMEs forming debt pressure, which may affect the goodwill of SMEs. (ii) Net income operating index. Net income operating index is the ratio of net operating income to total net income. Net income operating index = net operating income ÷ net income = (net income - non-operating income) ÷ net income. The Net Income Operating Index evaluates the quality of a company's earnings. A high level of non-operating earnings is associated with poor earnings quality. Because of the poor continuity of non-operating earnings, the main sources of non-operating earnings are disposal of assets and gains from securities trading. Asset disposal is not the main business of SMEs and does not reflect the core competence of SMEs. Many SMEs use "asset replacement" for the purpose of profit manipulation, and profits from securities trading depend on luck. Therefore, non-operating income is also income, but does not represent the income "ability" of SMEs.

(3) analysis of the audit report of the SMEs. With the complexity of accounting information, non-professionals use the CPA's audit report to analyze the financial situation of SMEs, can play a half-hearted effect.

The CPA's audit report refers to the CPA in accordance with the requirements of the independent auditing standards, in the implementation of the necessary audit procedures issued after the audit, for the audited unit of the annual accounting statements to express audit opinion of the written documents. In accordance with the provisions of Independent Auditing Standards No. 7 - Audit Report, the CPA shall, in the audit report, address whether the preparation of the audited entity's accounting statements is in compliance with the Accounting Standards for Small and Medium-sized Enterprises (ASMEs) and other relevant national financial accounting regulations, and whether the accounting statements fairly reflect, in all material respects, the financial position of the audited entity as at the date of the balance sheet and the results of its operations during the period under audit, changes in funds, and whether the selection of accounting treatments conforms to the principle of consistency. According to the conclusion of the audit, the certified public accountant shall issue an unqualified opinion, qualified opinion, negative opinion, refused to express an opinion in one of the audit opinion.

First, in general, if the certified public accountant issued an unqualified audit report, indicating that the audited entity used accounting methods in accordance with the accounting standards and related regulations; accounting statements reflect the content of the actual situation of the audited entity; accounting statements are complete, clearly expressed, with no material omissions; the classification of the statement of the items and the method of preparation of the statement of conformity with the requirements of the regulations, and therefore unqualified accounting statements for the audited entity. The user of the accounting statements can follow the usual method of analyzing the accounting statements if he/she is unqualifiedly satisfied with the accounting statements of the audited entity.

Secondly, if the audit opinion is qualified, the reason for the qualification (in the explanatory paragraph of the audit report) becomes a focus of attention for the users of the accounting statements and must be emphasized in the analysis of the statements.

Third, if a negative opinion is issued, it means that the financial position, results of operations or changes in funds have been seriously distorted, indicating that the accounting statements are not credible, and that users of the accounting statements should be more vigilant in minimizing the need for more economic relations with the entity, because the risk is too high.

Fourth, if the issuance of a refusal to express an opinion, often due to certain restrictions and not to obtain evidence of certain important matters, did not complete the forensic work, the risk of this financial report is very high, it is best to have less economic relations with this SME.