The financial statement is the type of financial status of the company and with the statement; you can easily monitor the financial health of the business. It is the statement through which you can easily present the financial activities which is a clear and concise manner without any hassle. It includes the income statement, cash flow statement, statement of retained earnings, and balance sheet. You can also state that it is an important tool for managing and helps to make decisions with ease.
It is the process that helps to get an accurate financial statement with experienced workers. The statement is the utility is limited for the planning and analysis without any hassle. Even the statement also shows the sources and utilization which also helps to fulfill the needs of the business with ease. It has been stated that the strength of the business activity depends on the selection of the bases also require to increases the fund. It is very important to understand the purposes of a financial statement whether it is related to the inside or outside the company.
The financial statement is the snapshot of the performance related to the financial position and cash flow of the business. Even these documents are also reviewed by investors, creditors, lenders, and management to evaluate the company. With this statement, you can easily make a difference between success and failure.
Unaudited financial statements or Director Report
In Singapore, every company have to prepare a Unaudited financial statements, which includes Director’s report, statement of changes in equity, statement of comprehensive income, director Statement, financial position statement, and many more. All these are prepared according to SFRS (Singapore financial reporting standards).
Moreover it disclosures also made with the regulations, relevant laws, and standard accounting to use it with ease and in the right way. It is the statement that records all financial data of the business once analysis and critically which is very useful for multiple stakeholders. When preparing the financial statement, its emphasis on the reliability, accuracy, and relevance to the financial data.
Primary Financial Statements
In this, you can also sight three types of a primary financial statement such as cash flow statement, income statement, and balance sheet. If we talk about the balance statement then it shows the main accounting in the form of the equation such as:
If we talk about the income statement, it helps to shows the profitability or lack of business over the set period.
Benefits of the financial statement
With this statement, you can explore the debt amount carried by the company and then it helps to measure the financial health with ease.
The statement also helps to take decisions with accuracy with cash flow problems. With this, you can also determine the customers standing in a good position.
Identification of trend
With the help of statement business owners also prepare and compare over the precious time through which you can easily identify the trend.
Understand the financial status of the business
It is the statement that offers the complete status of the business so that you can take measures according to it and carry the operations of the business with ease.
Manage working capital
The statement also helps to generate payable and receivable to analyze the outcome and improve the working capital. It also maintains the credit score and offers the proper balance.
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