It is undeniable that the company’s business activities are closely related to finance that requires professional reporting. Financial statements usually contain a record of the company’s financial transaction activities within a certain period. The benefits of a company’s financial statements are very important so that we become aware of the origin of the company’s money. What about you who need corporate financial services? Irenas bookkeeping provides excellent xero bookkeeping services in Australia.
Benefits of company financial statements
1 Financial statements serve as evaluation material for a business or business.
2 With a valid financial statement, the company can make the required innovation.
3 Financial statements must be prepared properly so that the company can make business decisions correctly
4 Financial statements function as a form of corporate management accountable to the owners and shareholders of a company.
Types of Financial Statements
In general, there are 5 types of financial statements, each of which has different functions and objectives. For more details, here are the types of financial statements complete with a detailed explanation:
1. Income statement
An income statement is a financial statement created to show the financial position of a company. The final result of the income statement shows whether a company is in a position of loss or profit. This type of financial statement is usually used by shareholders, investors, and lenders to assess the performance of a company.
2. Laporang Cash Flow
Cash flow statement or often referred to as cash flow report is a financial report that shows the cash in and out of a company. Besides functioning to determine the company’s cash flow, the cash flow report can also be used to predict cash flow in the future.
3. Capital Change Report
In a report on changes in capital, an accountant must make a report that contains information about a company’s capital within a certain period. Capital change reports must be made completely and comprehensively so that the company’s capital position can be known quickly and easily.