Financial reporting is all about making financial analysis through generating reports and documents to know about the overall performance of the company financially over a specific period of time. It provides an accurate illustration of a company’s finances, revenues, expenses, profits, capital, and cash flow.
Why Financial Reporting Is Important For Your Business?
Financial reporting gives essential information to the managers, investors, institutions, government, and others to make efficient decisions, goals and strategies for their businesses. Financial reporting is also needed and required by the government for tax purposes. In the absence of financial analysis, it is very complex to find out how much money is actually made by the company.
It also gives you one way to interpret that in which stock you should invest.