5 Types Of Company Financial Reports: Implementation And Function

YOGYAKARTA - Financial statements are important documents for companies, both small and large-scale. The quantization report serves to view the company's financial condition to as material for evaluating the company's performance. There are several types of financial reports that are important to note.

Financial reports are notes that contain information on the company's performance in one accounting period. So you could say that financial reports are also a representative of the company's performance or financial condition. Because financial problems are crucial and fundamental, companies need to implement good financial reports.

Usually, financial reports contain information about the balance, profit and loss records, changes in the position of money, and so on. So what types of financial reports need to be known by business owners or company leaders?

Making financial reports can be said to be one of the determining factors in business development or business. Types of financial reports in business are generally distinguished from the company's sources or financial utilization.

There are 4 types of financial reports that are generally applied in companies or businesses, as follows:

One type of company financial report that is important to understand is the loss profit report. This financial report was made by a business owner or accountant to find out the expenditure and income in business activities in detail.

In making profit and loss reports, it contains data related to the company's income and dependents while running a business. With this financial report record, business or company owners can find out about the financial condition of the latest period.

Profit reports and losses in that period can be used by companies as evaluation material. By evaluating, the company can determine or formulate further steps and programs to improve its business. Profit and loss reports are usually carried out at the end of the month or end of the year.

Cash flow reports or commonly known as cash flow are types of financial reports that have the same goal as loss profit reports. This financial report creation records income and expenditure information over a certain period.

This type of cash flow financial report has an important role in managing strategies for the face of new business opportunities. This financial report is useful when the company evaluates the company's financial structure and net assets.

There are two types of cash flow financial reports, namely direct cash flow and indirect cash flow. Direct cash flow contains only cash transaction calculations for cash flow in terms of operations. Meanwhile, indirect cash flow includes net profit calculation information as much as cash flow revenue.

Financial reports of capital changes are very important when business companies become public companies. This type of financial report is needed because the company has a fairly complex and wide ownership structure.

The capital change report is made as transparency regarding the dynamics within the company, especially in the financial department. This financial report aims to report on changes in working capital stemming from investment funds within a certain period.

The balance sheet report is a financial document that includes a combination of all financial reports. This financial report is usually made on an annual basis or within one year. The application of the balance sheet report is useful for real knowledge of the company's financial condition.

From the data recorded in the balance sheet financial statements, the company's financial strength will be visible. This type of financial report contains a number of important company information, such as shareholder data, creditors, government regulatory responsibilities, and others.

The next type of financial report is CALK. This financial report was compiled based on more detailed information regarding the loss profit report, balance sheet reports, capital changes, and cash flow. The CALK report aims to provide clarity on all financial activities within the company.

CALK's financial statements are generally applied by large-scale companies to convey adequate information in financial reports. These financial documents contain information related to the company's condition, including showing irregularities or inconsistent assumptions in it.

Those are the types of reviews of company financial reports that you need to know. Each type of financial report has a very important function in knowing the company's financial condition and as an evaluation for its future business strategy. Also read the differences in assets and pasiva in the company's financial statements.

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