Internal balance sheet analysis

Definition of internal balance sheet analysis

The internal balance sheet analysis is created within a company and is used to inform the company management. Your aim is to convey a realistic picture of the company's economic situation.

Balance sheet analysis

In order to achieve this effectively, it is often useful to use the underlying balance sheet

  • not due to commercial and / or tax regulations
  • but to create from a business point of view.

Otherwise, the internal balance sheet analysis mostly refers to the Tax balancewhile the external balance sheet analysis based on the trade balance.

internal balance sheet analysis

The internal balance sheet analysis is carried out by employees or by consultants of the company, e.g. B. management consultants, tax consultants or auditors. Your advantage is that you not only have access to the data published in the annual financial statements, but also all the figures available in the company, especially from accounting. Thus, for the difference between internal and external balance sheet analysis, the location of the analyst is less important than the material available to him.

Since in the internal balance sheet analysis, in addition to the balance sheet Income statement and - if available - other company data is processed in the management report, an operational analysis can be used instead of the internal balance sheet analysis.

In practice, the internal balance sheet analysis is of great importance because it helps to identify positive or negative developments at an early stage and thus serves to control the company.

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