The company’s financial statements have an important role to determine the development of a company. Through this report, you can find out whether the company has made a profit or a loss in a certain period of time. Generally, in finance and accounting, there is some data in financial statements, such as balance sheets, profit/loss reports, cash flow reports, and other notes related to financial reports. This data can later be used for various things, including as a reference in making company policies and building an ecosystem for company growth. Because after all, good financial performance can prevent fraud in the company and become one of the determinants of the company’s success in gaining profits. If you are a company owner who wants to make a profit, it is highly recommended to compile financial reports on a regular basis. The following are some of the objectives of preparing financial reports.
Knowing the Company’s Financial Condition
In managing a company, the financial sector must be the main focus that needs attention. This concerns various matters, such as investor confidence, the continuity of the company, to the fate of employees. By knowing the current financial condition, a decision can be made after … Read More