It helps you prict future trends and make strategic decisions. Objectives of financial accounting Financial accounting serves several important business purposes. It provides company financial information to external stakeholders. Records help maintain documents about important aspects of the business. This helps in business decision making while also helping stakeholders get an idea of the financial health of the business. Financial accounting helps organizations evaluate performance manage risk and plan and forecast better. Information contain in financial accounting.
It is a compilation of financial
Data us to make business decisions and India WhatsApp Number Data prepare statements for investors critors tax authorities and other stakeholders. It complies with certain rules and standards such as PSAK and others. Financial accounting information includes Financial reports These are comprehensive reports on the economic activities of a company. Auditors Report This is a report from an independent party who has examin the companys financial statements and relat documents. Management discussion and analysis MDA This section provides an overview of the previous years operations and how the companys financial performance was. MDA also usually includes estimates of future performance.
Users of financial accounting
Information Below are the Hong Kong Phone Number List various users of financial accounting information. External users These are individuals or entities outside the organization who also use financial accounting information. Investors and shareholders These people use the information to make decisions about buying holding or selling equity. They are interest in assessing a companys performance profitability and future prospects. Critors and lenders Banks financial institutions and other lenders use this information to decide whether to lend money to a business. a companys critworthiness its ability to repay loans. Suppliers Suppliers can use financial accounting information to determine whether to extend crit terms to a business.
