ANNUAL FINANCIAL STATEMENTS - INSTRUMENT USED IN THE MANAGEMENT OF ECONOMIC ENTITIES

Liliana Puican and Greti Daniela Togoe
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Greti Daniela Togoe: University of Craiova Faculty of Economics and Business Administration

Annals of University of Craiova - Economic Sciences Series, 2012, vol. 2, issue 40, 175-180

Abstract: One of the main functions incumbent on economic and financial analysis is of enterprise’s managerial instrument since the competent management of a company means to meet the economic realities in which we operate, be aware of the ups and downs of the entity you run, and this is not possible without relevant and timely analysis. Efficient resources management is to achieve the desired results with as little resources as possible. One of the major goals of enterprise’s management is the sound and efficient management of its available resources, due to their limits, in order to ensure a higher level of efficiency and profitability. The management team is interested in all aspects of financial analysis, because the company it leads has to be able to honor and pay both short-term and long-term and debts and it must equally make a profit for shareholders. A variety of indicators (profitability, liquidity, solvency, working capital etc.) can be calculated based on the company's financial statements, and their result will help the management team for decision-making. Company’s management necessarily includes the management of its resources, economic management and particularly financial management, as well as decisions on the purchase and distribution of resources, both human and material, as well as the financial and informational. Thus, because of its importance, financial control system can be considered as an indispensable managerial instrument for monitoring the regular activity of company’s activity in order to make timely decisions regarding each function, but also the entire company.

Keywords: annual financial statements; financial management; economic entity; financial resources; financial position; efficient resources management (search for similar items in EconPapers)
JEL-codes: M21 M41 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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