ANALYSİS OF FİNANCİAL STATUSES OF ENTERPRİSES BY USİNG ENTERPRİSE BUDGETS

Abstract

Appropriate policies need to be defined and implemented for enterprises to succeed in today’s rapidly changing business conditions. The implementation of such defined policies would be possible through budgets. When defining such policies, enterprise director can avail of financial analyses such as economic, marketing, research and development and other similar surveys. In this sense, it is believed that arrangement of enterprise budgets and analysis of budgeted financial statements would guide the enterprise director through the planning process.

The purpose of this current study is to analyse the budgeted financial statements in order to create a model for the enterprise director to help him detect the measures to be taken for the future. The process of using such a model in an enterprise has been explained in detail. With this in mind, first a literature review has been conducted on budgeting and financial analysis. Afterwards, the concept of budgeting, its functions and various budgeting and financial analysis methods have been explained. In the following section of the study, income and financial status statement has been prepared through regression method in a sample enterprise. The horizontal, vertical and ratio analyses of the said financial statements have been conducted and interpreted. Such interpretations are believed to be helpful for determining the measures to be taken and the possible deficiencies to be rectified during the planning stage of enterprise operations.