Financial documenta: These documents include receipt records, payroll reports, paid bills, bank statements, income statements, balance sheets and tax reporting forms. A business owner uses these documents to determine the financial success of the company and to identify areas that are unproductive. A department head might use financial documents to prepare a budget proposal.
A company’s financial statements provide various financial information that investors and creditors use to evaluate a company’s financial performance. Financial statements are also important to a company’s managers because by publishing financial statements, management can communicate with interested outside parties about its accomplishment running the company. Different financial statements focus on different areas of financial performances.
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