The analysis of the financial statements is part of the business analysis and is carried out with the purpose of introducing the economic and financial strength and possible perspectives of the company.

The analysis defines the current state of the company, providing real and objective data on the company’s liquidity, financial stability, indebtedness and profitability, defining the causes and symptoms of financial problems in the company. Users of this data can be owners, managers, creditors, auditors, states, employees.

Fundamentals for the preparation of a quality analysis of financial statements are: balance sheet (presentation of assets and liabilities of a company on a specific date), profit and loss account (statement of income, expense and results for a given period), cash flow statement (presentation of receipts and expenditures) the statement of changes in equity and notes to the financial statements.

The development of each enterprise, in addition to revenue growth, the level of invested capital, the number of employees, also monitors the need for more specific control mechanisms and continuous measurement of efficiency and effectiveness of the business.

If management does not have transparent, detailed, up-to-date and accurate data and information, it will certainly not be able to make quality and rational decisions regarding further business.

Business analysis refers to monitoring of business performance in relation to planned or standard size, and consists of financial business analysis based on business book data, business performance (liquidity, indebtedness, activity, cost-effectiveness, profitability) and analysis of the entire business.

It is extremely important that the company collects money, manages money along with money equivalents and uses it.

Liquidity is one of the most important preconditions for a smooth running of business. We often testify that companies account for profit in the income statement, but are at the same time illiquid, with business disturbances (abandoning suppliers, losing customers, leaving quality people, imposing obligations on banks, taxes on the state, and employee commitments).

In case the disturbances mentioned last for a longer period of time, there is a reduction in the market share or blocking of the giro account, bankruptcy and liquidation

In order to be able to manage costs, they should primarily be collected, classified, recorded or properly sorted by types and assigned to the product, service, centers of responsibility.

And finally analyze them.

Every expense is justified if the benefits are greater than the value of the sacrificing resources

It is necessary to create procedures that will help us rationalize costs, which will affect the motivation of all employees and their desire to track costs within their scope of work as well as wider.

The basic prerequisites for the introduction and development of any department in the company are: support and willingness to change from the owner or manager of the company, management interest, expert employees familiar with all business segments of the enterprise, highly developed awareness of the need for accounting support (financial, and management accounting) and by controlling this high quality IT support and adequate software.

Control, as the least represented department in the Republic of Croatia, has the task of coordinating business processes and their individual parts, and by building an integrated and unified control system based on a clearly defined vision, mission and company goals, to provide expert assistance to the ownership and governance structure when making strategic decisions.

For a successful enterprise, it is essential to ensure accounting alignment with the financial reporting framework and legal regulation, i.e. transparency, timeliness and accuracy within the Accounting Department.

In order for board and management to select accounting policies that achieve the company's overall goals, it is necessary to have good knowledge of accounting rules and the effects they have on the total value of the company. IFRS and CFRS provide a framework and help ensure that all business events are recorded on the basis of adopted accounting policies as well as aggregated into understandable, transparent and comparable information presented in the Company's underlying financial statements.