Financial reporting is the recording of the events sequentially that takes place in the business and not in terms of cash gained or lent. This financial hand book is used to predict the entities that would be used in future. The elements that are generally taken into consideration are:
- Assets
- Liability
- Equity
- Revenues
- Expenses
- Liability
While you put your emphasis on all these aspects you can surely make out a proper budget plan for your organization and thereby you can very well do the yearly analysis.
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Financial handbook gives a good picture of flow of a business.
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