Financial reporting as proven in the paper and in real world life is very important in the running of any organization. As I have show in the paper, it can help an organization identify loopholes, shortcoming, fraud and even act as control measure for the organization. They can also help the investors in making financial decisions as they are crucial in determining the financial health and return on the investment made on the company. Other stake holders like creditors are also of importance here since they use the information from financial accounting and reporting to gauge if they are going to lend to the company or not
10K and 10Q reports are also essential for legal compliance and regular update on the finical position of the company. As they are unaudited, they give the true picture of the organization and are crucial when potential investors are making finical decisions. Fraud can also easily be detected by using financial accounting and reports. This is possible through the analysis of this report and thus giving the organization or business management and deep insight of what ever goes on.
In conclusion, it financial accounting and reporting is essential for the success of any organization or business. As has been discussed in detail in the paper, it is crucial taking into account all the steps during the creation of these reports. Management could make a good use of these reports t get a good view of the organization and make decision that could have a positive impact on the future of the organization. A good report will form the basis of a good organizational future, a bad one lead to the failure though bankruptcy or mismanagement because the inappropriate decisions were made. It is also crucial as noted for investors and other stakeholders as they use them in making their day to day financial decision and helping the company grow in the long run. Abiding by the legal requirements of the land is also achieved through strict adherence to financial accounting and reporting principles.
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ACCT 601 Week 6 Summary and Conclussion.docx