Financial statements of enterprises

In analyzing the financial environment, the enterpriseneeds a lot of information. This is necessary for the manager to make informed and reasonable decisions that affect the result of the organization's activities. Financial reporting is needed in order to analyze the investment potential, make decisions about lending, and also to identify the risk that is associated with cooperation with suppliers and customers.

At the enterprise the analysis of the financial environment is usually carried out by the accounting department. Its employees collect, sort, summarize documents on commercial transactions. These include:

- sale of goods and services;

- distribution of the wage fund;

- purchase of stocks;

- other.

The financial statements include a set of these data, their classification and generalization. Documents can be prepared every quarter, half a year or once a year.

In accounting, an economic entityis considered as an organization that does not depend on the owner, the purchased goods, the products sold and the wages paid. This distinction is very important for understanding what financial reporting is and how it is drafted.

A private enterprise is usually managed by a small number of participants who are solely responsible to themselves and are in charge of bankruptcy with their property.

Most often this is individual entrepreneurship (IP). Quite often, "IP-Shniki" are asked the question: do they need to keep accounting records?

In practice, financial statements of individual entrepreneurs are formed through systematic and documented information. It is compiled on the basis of accounting statements.

Open Joint-Stock Company (OJSC) isa corporation that is in management management. It, in turn, reports to the board of directors, shareholders, control bodies, whose shares are publicly available (for sale).

The financial statements of the OJSC include 2 parts: profit and loss account and balance sheet. The latter is a detailed state of the enterprise on a certain date (mainly on December 31). But some organizations form reports on the completion of sales. Basically, these are those that work seasonally. The profit and loss account is a detailed accounting of the expenditure of funds earned (lost) by the enterprise for a certain period of time.

Limited Liability Company (LLC) is a corporation organized by one or several persons, which is responsible only to its creditors with its declared capital. Its size is determined by law.

The financial statements of the LLC are drawn up by analogy with joint-stock companies. The profit and loss statement and the balance sheet of the enterprise, compiled for a certain fiscal year, are presented.

Comparing the organization's documentation for severalperiods in a row, you can identify trends for growth or, conversely, to a decline. Assessment reports, including detailed, can help the manager in making decisions. Comparative analysis with its previous results and average indicators is very important for characterizing the financial condition of the enterprise.

</ p>