The financial statements for your company are probably the single most cited reports by your company. It includes several other documents, including balance sheets and income statements, and provides detailed accounts for anyone seeking a complete preparation of financial statements of your business.
So who actually uses the information in the financial statements? Which groups of people find such things important and why?
Owner and manager
First of all you need information as an entrepreneur, without the information in the financial statements it will be very difficult to make important business decisions. Whoever you assign to lead your company also needs access to financial reports, not only to manage day-to-day matters, but also to be able to provide more detailed reports to shareholders.
When someone has an interest in the success or failure of your business, they will often demand that they look at their regular and up-to-date financial statements to review their investments. When they need to withdraw funds, they can use the financial statements to find out what happens if something goes wrong.
Anyone considering increasing your company's financing should have access to your company's financial statements; Whether it's a central bank or an independent investor, they will go out of their way to make sure you're deal safely on interest-bearing returns.
Before potential investors decide to invest in your company, they want to see the financial health of your company. To do this, he will review your annual financial statements. investors like B. Lenders want your business to have good reviews so they can ensure a return on their investment.