Financial analysis is the process that follows a financial audit. We can say that financial analysis and financial management are the financial stability pillar of any company. With an understanding of the financial analysis, we can identify the project risks or the level of its profits by knowing financial information about that project. The difference between financial analysis and financial management is that financial analysis gives a clear idea of the project, and financial management executes or rejects that project. Therefore, we cannot separate financial analysis from financial management in any way.

Definition of financial analysis and financial management:

In this paragraph, we will talk separately about the definition of financial analysis and financial management:

Financial analysis: is the process of analysis of financial statements or the so-called "financial statement analysis". This process is intended to fully assess a company, absorb its profits and understand its risks by knowing all the financial information about that company "annual and seasonal financial reports and financial audit reports". Through financial analysis, we can know the level of the company and mainly the credit risk assessment.

Financial management: is the activities and practices of the management team of a company in the management of the company's accounts and funds and work to regulate the movement of funds in a manner that achieves the company's goals in the development, growth and investment of funds in a way that benefits the company in a positive way profitable. In general, the task of financial management is to manage investment portfolios in a way that maximizes the company's revenues and reduces investment risks.

Stages of financial analysis:

The financial analysis process goes through several major stages, is:

1. Work on restatement of financial statements.
2. Perform a comprehensive analysis to detect measurement errors and then work on resetting those errors.
3. Conducting an analysis of the financial ratios after performing steps (1-2) to calculate the financial ratios based on the figures disclosed.

Financial analysts perform financial analysis, who write reports that are presented to financial management that makes decisions based on ratios and data that were concluded.  Thus, we can say that financial analysis and financial management work hand in hand to advance the company's work for the best and decide to continue or stop a project or modify some of the project's provisions to be more commensurate with the objectives and aspirations of the company. Therefore, we cannot distinguish between financial analysis and financial management, as they are the financial stability pillar of a company.