FinancEdu

Financial Statements are those written reports that show the financial health of a company. The details of those reports can include account balances and transactions that show various kinds of financial activities of a business at a particular time and over a course of period.

Financial statements are very important for businesses when it comes to raising funds from other entities. Since those statements convey the financial performance of a business, it is much easier for the investors or creditors to assess and rate the financial health of that business before they start investing or lending out the funds.

Before showing the Financial Statements to the public, they must be audited by professional auditing agencies or government agencies to ensure that those statements present a true and fair view. The audited financial statements are also crucial for tax, financing, and investing purposes of that business.

Source: https://www.investopedia.com/terms/f/financial-statements.asp

Why is Finance important?

Some people often think that finance is for Business majors, Banking and Finance, and other related fields. However, that is not true. Even if you are a healthcare doctor, designer, or even an architect, you still need to be financially well. If you are a dentist and want to run your own dental clinic or expand your own business, you need finance. If you are a designer and want to start a home design business, you need cash and capital. The examples can go on and on. But if you do not have enough money to first start off, what are you gonna do?

The word Finance is popular in every business organization today and even in the past. It is the core of every business organization to start the operations and to run day-to-day activities. Even so, finance alone is not enough. In order to be financially well, finance needs to be well managed. That is where Financial Management comes in. Managing finances is very important in making decisions on what to expense and what not. If you know how to manage your finances, your business will undoubtedly flourish.

We are no experts, but a team who is deeply committed to sharing and offering Accurate and Insightful Financial Knowledge to anyone anywhere.