Getting To Know The Trade Company's Content Report: Understanding And Types

Illustration of the trading company's financial statements (Pixabay)

YOGYAKARTA The trade company's financial statements are one of the important elements in the management of the company. This document includes financial information used to evaluate the company's performance and make strategic decisions.

What is meant by a trading company is a company that carries out buying and selling goods at prices above the cost of goods in order to make a profit.

In trading companies, gross profit is obtained by looking for a difference between selling prices and the cost of goods sold.

The amount of profit and loss earned by trading companies in one term will be included in the financial statements of trading companies.

The financial statements of trading companies are a record of the financial information of a company in a certain period. This document describes the company's performance situation, containing the company's financial records of both transactions and typicals.

Generally, trading companies make financial statements when their company's accounting period enters its end. This accounting period is determined by each company. Something is done at the end of the year, something is also done every few months.

The company's policy of making financial reports is different from one another. Even so, the concept is the same, every transaction is accurately recorded in the financial statements so that calculations can be carried out appropriately. That way, trading companies can calculate profits, losses, and pirate payments.

Compiled from various sources, the financial statements of trading companies are divided into 5 types, including:

1. Profit loss report

In trading companies, profit and loss reports are used to find out how the financial position is when earning profits or suffering losses. This type of report will be used as a reference for taking steps and decisions for company leaders.

Some of the components that need to be considered in making a loss profit report on trading companies, namely:

Components of profit-loss reports include profit-loss reports from company activities, profit-loss originating from affiliates, and profit-loss during the period.

2. Cash flow report

The cash flow report is a document containing reports of the flow of transactions entering and leaving the company. The report consists of transactions within a certain period.

Cash flow reports are very important for trading companies because they are used as indicators of cash flow for the coming periods

Some of the components that are the source of the trading company's cash flow reports are:

3. Capital change report

This type of trading company's financial report contains the amount of financial capital changes that occur. With this financial report, the company can have a problem with the company's future plans.

The components needed in making reports of capital changes, among others:

4. Balance report

The balance sheet report is a document that shows the condition, information, and financial position of a business in a certain period. This type of report is very important for companies to be able to plan projects in the future.

The components needed in making trade company balance reports, namely:

5. Records on financial reports

This note contains more detailed financial reports, presented to high-ranking trading companies and potential investors who want to invest in companies. This report will facilitate the process of examining financial reports in a company.

That's information about the trading company's financial statements. Get news updates of other options only on VOI.ID.