Question

What kinds of reports should I expect to write in the Finance profession? Why?

Answer 1

Reports

1.Sales, Purchase, Stock, Expense reports and register

2.Assets and its register

3. Investment and its returns

4. Cash reports and register

5. Monthly profit and loss and Balance sheet of the company , including various MIS reports as per company requirement

6. Monthly budgets and its variances with actuals

7. Annual reports to stake holders

8. Ratio analysis

9. Financial analysis for assessing trends and finding areas for improvements

10.Cash flow statements

11. Equity statements

13. Reconciliation of debtors, creditors, investments , cash and bank

14. Ageing of debtors and creditors

15. Earnings available to equity holders

Reasons for various reports in Finance profession

To represent correct financial position of the company.

To derive the profit and loss for the year

To analyse performance of company as per segment wise and location wise

To asses how well the company is utilising the available surplus funds

To derive the various ratio analysis for taking necessary actions in terms of liquidity, debt equity mix, effective utilisation of assets etc..

To provide accurate picture of company to various stakeholder

To take corrective actions in day to day activities

To compare and analyse previous performance of company

To forecast and prepare budgets of the company based on trends and available resources