Introduce yourself to the basics of financial documents.
Financial documents play a critical role in running small and large companies. The documents help businesses of all kinds in different industries to communicate their financial information to external parties or entities such as investors and banks. The financial reports summarise a business’s accounting procedures and features cash and account title tabulations.
The financial reports also showcase the financial status or position and performance of a company or individual, including changes in finances over a specified period. Businesses aim at using the statements to share financial decisions with internal and external parties to help with economic decisions.
Data sourced from business financial systems are used to aggregate, condense and simplify the development of financial documents. The statements simply display results from a company’s accounting system. The financial documents are usually developed and released on an annual basis every financial year.
This course has been designed to introduce you to the basics of financial documents.
Firstly, we define financial documents and explain what they are. The course also briefly explains what goes into creating financial statements.
Next, we cover the four main types of financial statements that you should know about.
The course introduces each statement and explains what they do and feature. It also explains the role of each statement in the operation of a business and in the life of individuals.
Finally, we state several benefits of financial documents to the business, including external entities, such as lenders and investors.