Financial reporting is the process by which a company provides information about its financial performance to investors and other interested parties. This information includes things like the company’s income statement, balance sheet, and cash flow statement.
Financial reporting is required by law in most countries, and it helps investors make informed decisions about whether to invest in a company or not. Financial reports are also used by companies to track their own financial performance over time and make sure they’re on track to meet their goals.
There are a number of different standards that companies must follow when reporting their finances, which can be confusing for investors. One of the most common standards is U.S. Generally Accepted Accounting Principles (GAAP). Other countries have their own set of accounting principles, which can be quite different from GAAP.
Financial reports can be a little bit dry and difficult to read, but they’re an important part of the investing process. By understanding financial reporting, investors can make more informed decisions about where to put their money. This is where the professionals at Bookkeeping for Contractors come in and help you succeed in your business.