The accounting statements basically convey the economic information to the concerned and interested parties in regards to the functioning of a particular entity.
The issuing of accounting statements is mandatory for any company or an individual within the regulatory framework of an economy. The frequency of its release depends on the nature and volume of the financial transactions.
There are several details included in the accounting statements and indicating each of those with explanation is beyond the scope of this writing. But a few of those can be mentioned in a concise manner as following:-
- The accounting statements are good instruments that help in pin-pointing the factors that cause unnecessary expenditures in running the business.
- These statements help in focusing on the dynamics of the flow of funds within the framework of the business.
- In case of an accounting statement of an individual, his/her personal tax obligations are mentioned in full details.
- The accounting statements of the business entities too include tax related matters but the format is different and even more comprehensive than that in the case of an individual.
- The chartered accountants and financial managers are hired by the concerned firms to prepare neat accounting statements.
- Few of the corporations stress on the segment of showing the details of the retained earnings in the process of preparing these statements.
- The accounting statements are both printed on sheets of papers and delivered and also electronically mailed to the concerned parties.
- In cases of issuance of accounting statements of the registered companies, the period of issuance is, from a general perspectives, quarterly, half-yearly and annually.
In the conclusion it can be said that no company or individual can properly manage its/his/her financial transactions and relevant money-related intricate operations without the help of a timely released accounting statement.