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2 views

study material 2

Uploaded by

Alfred Go-od
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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A financial accountant in a small company will often cover all aspects of the financials, including

preparing annual financial statements. In larger companies or groups, they may be specialists in financial
reporting, perhaps with a portfolio of group companies or branches, which they will review and report
on.

Financial accounting is the process of recording, summarizing, and reporting a company's business
transactions through financial statements. These statements are: (1) the income statement, (2) the
balance sheet, (3) the cash flow statement, and (4) the statement of retained earnings.

Compiling information — financial reporting is for compiling all information, which isn't possible with
financial accounting. Accounting rules — with financial accounting, specific rules need to be followed in
order to remain consistent and keep business accounts running smoothly.

Financial statements provide a snapshot of a corporation's financial health, giving insight into its
performance, operations, and cash flow. Financial statements are essential since they provide
information about a company's revenue, expenses, profitability, and debt.

Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and
reporting the myriad of transactions resulting from business operations over a period of time

Compiling information — financial reporting is for compiling all information, which isn't possible with
financial accounting. Accounting rules — with financial accounting, specific rules need to be followed in
order to remain consistent and keep business accounts running smoothly.

Financial statements provide a snapshot of a corporation's financial health, giving insight into its
performance, operations, and cash flow. Financial statements are essential since they provide
information about a company's revenue, expenses, profitability, and debt.

Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and
reporting the myriad of transactions resulting from business operations over a period of time

Financial statements provide a snapshot of a corporation's financial health, giving insight into its
performance, operations, and cash flow. Financial statements are essential since they provide
information about a company's revenue, expenses, profitability, and debt.

Financial accounting is a specific branch of accounting involving a process of recording, summarizing, and
reporting the myriad of transactions resulting from business operations over a period of time

Is financial accounting or financial reporting more helpful for businesses?


Both financial accounting and reporting are important for your business and each serves its own purpose
to shed light on your business finances. I, in fact, they go hand in hand. Financial accounting is vital for
the day-to-day running of a business. Keeping books up to date and maintaining consistent processes is
key to keeping track of income and expenses and being able to prepare reports.

Financial reports are important because they can communicate to the wider business and investors how
a company is performing. They can also help businesses to plan ahead, predict future outcomes and
learn from past mistakes. Stability and consistency lie at the heart of a successful business in regard to
financials. Both financial reporting and accounting are vital components of this.

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