Every business has a specific goal. There may be several goals, they are usually set by the owners, and to achieve it, material and human resources are used, with the help of which financial and economic activities are carried out. That is, in essence, financial and economic activity is a tool for achieving hierarchical, economic and other goals facing a particular enterprise.
The three main characteristics of financial and economic activities are the number and range of products manufactured, as well as sales volumes. In turn, the volume of products produced directly depends on the availability and quality of production facilities, the necessary raw materials or components, the labor force available in the region capable of performing certain other operations. The sales market greatly influences the quantity and range of products.
Its cost is directly dependent on the volume of production. The more products of one type are produced, the cheaper each unit will cost. The volume of profit, profitability and, ultimately, the financial condition of the company depends on the quantity of production and its cost.
Financial and economic activities should be purposeful. For it to be successful, the owner must constantly balance between what the intuition suggests and sober calculation. There is always a risk of making a wrong decision, and then the result will turn out to be completely different from what all the prerequisites seemed to be.
Each firm is a complex organism, even if it produces very few products or provides an insignificant number of services. Financial and economic activity consists of many very different operations. Each of them must be accounted for and documented. Each financial and economic document reflects the performed action or the right to it. Financial documents accompany the supply of the enterprise, the sale of products, the activities of individual departments, settlements within the enterprise and with third-party organizations.
There are a lot of factors influencing the financial and economic activities of an enterprise or organization. Not all of them can be analyzed. The most important are the available resources - financial, material, personnel.
It is possible to assess the activities of an enterprise using a partial or complex analysis of its financial and economic activities. Most often, the basis for the analysis, both in a separate direction and in a complex one, is economic indicators, and first of all it is the quality of products. The object of analysis is the business processes that are going on at the enterprise, their socio-economic core, as well as the financial position that is obtained as a result.
