Approval of financial analysis in the management of agricultural company

Abstract

An agricultural company is a living organism that tends to evolve. In order to achieve this, it is necessary to implement adequate planning, establish controls and analytical procedures that are used in all aspects of the business. For decades, agricultural companies have been dominated by accounting analysis, which included, above all, adequate monitoring of the process through analysis in the financial statements, and in particular the analysis of data relevant to the operation of any enterprise. The application of modern accounting analysis should provide the management of the company with a wide range of opportunities regarding the continuous growth and development of the company in accordance with the set goals. However, this is not enough. Modern financial management does not rule out an accounting approach, but it does introduce a complete observation of the financial situation in the company, fair valuation of the assets of the company, realistic financial reporting, through the implementation of a realistic financial report obtained by the top management by the sector managers and departments in the company.