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The basic link of financial management refers to

The basic links of financial management include five parts: financial forecasting, financial decision-making, financial planning, financial control and financial analysis, as follows:

1. Financial forecasting

Financial forecasting is to make a scientific prediction and calculation of future financial activities and financial achievements based on historical data of financial activities and considering realistic requirements and conditions. Its purpose is to measure the economic benefits of enterprise investment and fund-raising programs, provide basis for financial decision-making, predict the development and changes of financial revenue and expenditure, and serve the preparation of financial plans.

2. Financial decision

Financial decision is a process of selecting and deciding financial plans and policies, also known as short-term financial decision. The purpose of financial decision-making is to determine a reasonable and feasible financial plan. Financial decision-making is the core of the whole financial management. Only by determining the effective and feasible scheme can financial activities achieve good benefits and achieve the financial management goal of maximizing enterprise value.

3. financial plan

a financial plan is a document that coordinates and arranges investment, financing and financial achievements in the planning period in monetary form. The purpose of making a financial plan is to set specific quantitative targets for financial management, which is an important part of an enterprise's business plan and the main basis for financial management and financial supervision.

4. Financial control

Financial control refers to measuring and correcting the process and results of capital investment and income of an enterprise, with the purpose of ensuring that the enterprise's goals and financial plans made to achieve this goal can be realized. It is the key link of enterprise financial management activities, and it is also the fundamental guarantee to ensure the realization of financial management goals.

5. financial analysis

financial analysis is an economic management activity that analyzes and evaluates the past and present profitability, operating ability, debt repayment ability and growth ability of financing activities, investment activities, business activities and distribution activities of enterprises and other economic organizations based on accounting, statements and other relevant materials. It is an economic applied discipline that provides accurate information or basis for organizations or individuals to understand the past, evaluate the present situation and predict the future decision-making of enterprises.