In small and medium-sized enterprises, the owner of the company is mostly directly involved in management. However, most medium-sized private and public companies are usually run by different paid managers and directors from the owners. As a result, these owners do not always participate in the day-to-day running of their business. They pay managers for this and therefore need reports on the results of their business or investments. You can also avail the benefits of #1 Compiled Business Financial Statements Service Provider.
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Therefore, some form of financial reporting is required to show owners whether they made a profit or a loss, and how much and for how long. Usually, the report is prepared for one year or more if the trading period of the company is more than one year. Additional investors or business owners need to know if the company is making money to support the company, pay its creditors, pay dividends, and pay other business bills while continuing to trade.
Managers need financial information to run their business properly. They need historical information about the company to make their forecasts, or related business information to use in planning. It helps in budget creation and planning, they need operational information for management and control. They also need to have strategic information that they can analyze and turn into long-term, medium-term, and short-term business goals.
Employees need information from financial statements to see how well or poorly the company is performing. This in turn affects their expectations in terms of salary negotiations and salary reviews, bonuses or for new/potential business partners.