Contemporary Problems of Social Work Современные проблемы социальной работы academic journal

33
VOLUME 2, No. 1, 2016
In carrying out financial analysis of small businesses need to analyze the solvency and 
liquidity.
Liquidity – the ability of certain types of property of the organization to address in the form 
of money without losing their balance sheet value [8]. Solvency in turn means an organization’s 
ability to repay its financial obligations.
The concepts of solvency and liquidity are similar in content, but they are not identical. The 
liquidity of the company is investigated on the basis of balance sheet data. The information, 
which is reflected in the section “Current assets”, characterizes the value of current assets. 
Information on short-term obligations of the organization used in the calculation of liquidity, 
are contained in “Current liabilities” section [13].
The owners of the company, as well as contractors, are interested in a stable financial 
condition of the enterprise, which can be estimated on the basis of the current liquidity ratio. 
This ratio indicates the extent to which existing assets of the company are able to cover current 
debts.
The liquidity ratio determines the Balance Sheet, which provides timely coverage of current 
liabilities current assets. The sooner the assets can buy the money-form, the higher its liquidity. 
Due to the fact that in current assets include not only easily realizable assets, but illiquid, the 
organization may have not only greater, but less liquid [3].
Analysis of liquidity balance (presented in Table 1) is compared to a phased means the 
asset, grouped according to their degree of liquidity on the most liquid to least liquid, with 
commitments in liabilities, grouped by their maturity and arranged in order of increasing 
maturity [14].
According to the results of research of liquidity absolutely liquid balance will be determined 
by the performance of the following conditions: A1> A1; A2> P2; A3> P3; A4
Table 1
Grouping of Assets and Liabilities of the Balance Sheet 
to Determine the Balance of Liquidity
Indi-
cator
Group
Code
Balance
ASSETS
А1
Most liquid assets
1250 line 
1240 line
Short-term investments balance
Cash
А2
Marketable assets
1230 line
Accounts receivable (under one year)
А3
slow- implemented 
in assets
1210 line
1220 line
1260 line
1270 line
Reserves
VAT on purchased assets
Accounts receivable (over the year)
Other current assets
А4
Illiquid assets
1100 line
TOTAL Section I
PASSIVE
P1
The most urgent li-
abilities
1520 line
Payables
P2
short-term liabili-
ties in
1510 line
1540 line
1550 line
Loans
Amounts payable to participants (founders) for income 
payments
Other current liabilities
P3
Long-term liabili-
ties in
1400 line
1530 line
TOTAL Section IV
revenue of the future periods
P4
Permanent (stable) 
liabilities
1300 line
TOTAL Section III

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34
CONTEMPORARY PROBLEMS OF SOCIAL WORK
When analyzing the liquidity of small business organization there are certain difficulties. 
This is primarily due to the fact that these organizations use the simplified taxation system. 
In this case, the need to draw up a balance sheet in accordance with the general requirements. 
In addition, many small balance line organizations may remain unfilled. In this case, complete 
information on the liquidity is difficult to obtain.
In practice, the analysis of financial condition following the liquidity analysis is conducted 
solvency analysis. The solvency of the organization is the external manifestation of financial 
stability. Solvency shows how the organization is independent in providing its own production 
resources. solvency analysis is performed using absolute, current liquidity ratios, as well as by 
calculating security obligations of the debtor's assets and its solvency for current liabilities, 
depending on what values take performance to determine the degree of solvency of the company. 
The company is considered insolvent if it has more than three months’ overdue payables in the 
amount of more than 100 thousand rubles. Consequently, the small businesses that have a 
solvency index of less than 3 months are considered to be solvent.
Financial analysis for small businesses involves the development of not only the goals, but 
the action plan for the implementation of the financial analysis. The head of a small business 
must be borne in mind that, as the current situation is related to the results of the analysis, and 
ultimately – what are the benefits of this are possible. It is necessary to regularly carry out 
the process of financial analysis for management decision-making and achieve financial goals. 
Established financial goals are grouped by areas, forming the company's financial policy.
In summary it is worth paying attention to that small businesses use financial analysis will 
quickly identify the existing problems in the financial position of the company. The result of the 
financial analysis in small businesses will allow us to take the necessary management decisions 
to stabilize the business. Thus, it helps avoid a crisis state enterprise or bankruptcy. directions 
to improve the financial performance, cash flows formation.
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and Medium Enterprises in the Russian Federation.”
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