Introduction to Financial Reporting.
Importance of Investors and Creditors.
Financial reporting is perhaps the most significant tool that an entrepreneur will require in day-to-day business practices. One of the main tools in being a successful entrepreneur is being able to make accurate predictions, evaluations, and being consistent in doing so. For example, a stockholder that sees rising levels of net income knows that this means the company's profits look solid, and for bankers, profit means that debt can be paid. As a prospective entrepreneur, do I truly understand the importance of financial reporting in my business? To answer this question, I will take a closer look at the importance of the FASB, the primary role of a business entity, and finally the importance financial performance indicators to a business. .
More companies have adopted the policy of hiring staffing agencies to do some of their "dirty work". One of these staffing agencies, Kelly Services, does the entire tasks necessary in the hiring process such as advertising, interviewing, and hiring. The use of staffing agencies alleviates the cost and inconvenience that a company would have to endure to do these tasks themselves (NASDAQ). To be able to provide these services, staffing agencies need to have accurate financial information and reporting. It is essential to know where you stand in comparison to your competitors. Investors have more faith investing their money in a company that is or is going to be profitable. These are the things that I, as an entrepreneur, will have to consider if I wish to be successful in my field. .
According to Rutgers, the FASB's (Financial Accounting Standards Board) objective is to "establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information." This is crucial to all businesses because to make decisions about finances, you must be able to rely on having "credible, concise, and understandable financial information" (Rutgers).
