Financial report and its role
A financial report is a written document that reflects the financial position and operating results of an enterprise, including a balance sheet, an income statement, a cash flow statement, a statement of changes in owner's equity, a schedule, notes to the accounting statements, and a financial situation statement.
The function of the financial report is to comprehensively reveal the financial situation, operating results and cash flow of the enterprise in a certain period of time, so that the business management personnel of the enterprise can understand the completion of various tasks and indicators of the unit, evaluate the business performance of the management personnel, so as to find problems in a timely manner, adjust the business direction, formulate measures to improve the level of operation and management, and improve economic efficiency, Provide basis for economic prediction and decision-making. It is beneficial for the national economic management department to understand the operation of the national economy. It is also conducive for investors, creditors and other relevant parties to master the financial situation, operating results and cash flow of the enterprise, which is conducive to meeting the requirements of financial, tax, industry and commerce, audit and other departments to supervise the operation and management of the enterprise.