What Is Internal Business Analysis?

Internal analysis is the analysis of the financial status of the enterprise by the internal management of the enterprise. The symmetry of external analysis, that is, business analysis. From the inside of the enterprise, it analyzes the economic activities of the entire process of the company's own operations, supply, production, and sales, human, financial, and material operations and their results. Including profit analysis, sales analysis, product analysis, production analysis, resource utilization analysis, capital analysis. ^[1]

The symmetry of external analysis, that is, business analysis. From the inside of the enterprise, it analyzes the economic activities of the entire process of the company's own operations, supply, production, and sales, human, financial, and material operations and their results. Including profit analysis, sales analysis, product analysis, production analysis, resource utilization analysis, capital analysis. In addition to making the necessary analysis of the company's safety and profitability, it also focuses on efficiency analysis. Because under the given conditions, the level of efficiency is the key to the survival and development of the company. The security, profitability and efficiency of the company may not be completely synchronized. In order to improve liquidity, profitability may be reduced; in order to increase

This kind of analysis must use not only the accounting information provided by financial accounting, but also the economic information provided by management accounting and other aspects. It is a comprehensive analysis of the entire production and operation activities. ^[2]

The purpose of the analysis is to determine whether the financial status of the company is good, and to provide a basis for future policies such as financing, investment, and surplus distribution. Through this analysis, management authorities can know whether the company's funds are surplus or shortage, how the company's funds are flowing, and how the company's financial structure is, which must be known when formulating policies. ^[3]

Internal analysis is also a type of traditional analysis. Refers to the content of the research literature. The essence of literature analysis is the analysis of the content of the literature, including clarifying the differences between the actual content and the literary content, determining the level of professional knowledge of the author of the literature in the narrative, and clarifying the author's personal attitude towards the facts mentioned in the literature .

Authors' prejudices or dislikes are often the cause of intentional or unintentional distortion of the literature. The author's methodological views also cause distortions in the literature. For example, authors who hold different worldviews may admit that two different facts are important when explaining specific phenomena. Such examples often appear in the writings of some bourgeois scholars who explain many phenomena and processes from the perspective of subjective idealism. In the internal analysis, full attention must be paid to identification.

Some literatures require special analysis methods due to their own characteristics, and experts in this field need to be involved in the work. An analysis of legal literature, for example, will only prevent researchers from making big mistakes if they have knowledge of legal vocabulary. For the analysis of personal documents, psychological analysis is often used to draw conclusions on the personality of the author of the document and his attitude towards certain political or social phenomena based on the information in the document. ^[4]