Any financial report is mandatory anda very important part of the annual report. Its purpose is to ensure the collection of information on the financial position of the enterprise, the results of financial activities, any changes in the situation for the year. Such a report reflects the effectiveness of enterprise management.
Presented in documents of this naturethe data should be clear (giving a good idea of the company's activities), significant (allowing to evaluate the results of the work), reliable (without errors, distortions and deviations from the truth), comparable (to determine trends in the efficiency of the enterprise).
The financial report of the enterprise should beis compiled in strict accordance with the acceptable deadlines (reports are daily, weekly, quarterly, annual). Financial information has limitations on benefits and costs, that is, the benefits obtained from its compilation should exceed the costs of it. Reports on cash and cash are made on a daily basis, on sales volumes - weekly, monthly, managerial - monthly and quarterly, financial - once or twice a year.
The financial report is intended to prepareinformation for different users. It may be needed by the enterprise's creditors or suppliers of raw materials who want to find out whether the company is creditworthy. Shareholders and investors on the reports learn about profitability, government agents use such data to collect taxes or external regulation of the enterprise.
The most important forms of reporting on financial management are: balance sheet, profit and cash flow statement.
The main document - the balance sheet financial report -reflects the balance of the assets, capital and liabilities of the enterprise at a particular point in time. It consists of an asset and a liability, which, according to the principle of balance, must be equal. Under Russian law, balances are drawn up for 1 quarter, one half year, 9 months and for the whole year.
Assets are material resources,owned by the enterprise and having a monetary value. They are material (equipment, raw materials, machinery, etc.) and intangible (possession of rights). Liabilities are financial debts and liabilities of a firm or enterprise. They appear when you make loans, loans.
To evaluate the effectiveness of the company are compiledprofit and cash flow reports. First of all, the profit and loss account for a certain period reflects all income and expenses of the enterprise. In this report, first the revenues (gross sales) and costs (costs) are summarized, then the second is subtracted from the first to reflect the net income of the organization.
The financial report on the movement of money providesmanagement of information on all payments and receipts of funds for a certain period. This document helps to evaluate three resulting flows of funds: financial, investment and operational, explaining where the money came from and what was spent.
The preparation of financial statements is the responsibility of organizations and enterprises under the general taxation regime. Documents must be systematically compiled and submitted to the tax authorities.
Each financial report of the company hasaccompanying explanations. They should contain information about the methods of accounting at the enterprise, the description of individual articles of assets and liabilities, data on the structure of shareholders' capital, information on transactions, off-balance sheet items (options, swaps, forward contracts, etc.). Often explanations give more information about the state of the enterprise in financial terms than the reports themselves.
