What are Financial Reports?
Financial Reports are documents that disclose a company’s performance and information over specific periods. These reports are usually recorded annually or quarterly, depending on the company. There are four main kinds of financial statements within a financial report: income statement, balance sheet, cash flow statement, retained earnings statement. Each of these statements serves its crucial purpose in making up a financial report.
Why is Financial Reporting important?
Financial reporting is very critical for understanding how much money you have as a company. Financial statements give investors a great look into the company’s financial stability to help them decide whether it is a good idea to invest in the company. These reports also tell you what aspects of your business are generating the most revenue and what parts could use a little more funding.
Financial reporting leads to benefits in your company in multiple ways. They can directly relate to handling a vital business decision. It can also help one manage their debt, simplify their taxes, and, most importantly, build trust with investors.
Financial Reports in Startup Wars
For example, the user is shown the financial report for their fictitious company after operations every week. In this report, the user can see all of their company’s financials and their company’s objectives and marketing reports.