The financial statements provide financial picture at the company’s financial condition in that time. List the financial statements are usually prepared by the end of the accounting period the company.
In the financial statement will be seen a gain or loss experienced by the company. With the financial statements prepared systematically at the end of period balance sheet, income statement, statement of changes in equity and notes on testimony.
With the financial reports will ease in viewing the development of the company so that those who run the company can analyze and provide policies concerning the operation of a company.
With the financial statements of the business people can provide a picture of the work program to be implemented. For example:
1. Making decisions about the use of limited wealth and to set goals.
2. To direct and control effectively the human resources and other production factors.
3. Maintain and report on property security.
4. Help function and social supervision.
financial reporting is essential, so that every company seems mandatory to have it, because that’s where the strategies will be established and implemented.