What is financial accounting?
Financial accounting is aimed at providing accounting reports and analysis to other areas of business. Financial accountants are responsible for creating and issuing the company's financial statements, provide accurate and timely information for administration and ensure that all regulatory reporting requirements are met. The aim in financial accounting is to constantly provide valuable, accurate and reliable information. These statements summarize the activities of the company in a year and are used by shareholders, banks, units for employee negotiations and the general public to evaluate the financial value of the company. The statements are audited by independent accountants to verify the information and ensure the assurance of the readers. The financial statements consist of five documents; balance sheet, profit and loss statement; cash flow and owners or sharing owners and notes. Notes on the financial statements are written explanation of items in the financial statements. Here are in detail any unusual items or change in the procedure that affects the accounting fromávětku.
The balance sheet is a summary of all assets and liabilities at the end of the year. The accounts reflect the total amount of cash and liquid assets at hand, the amount of the debt that the company is carrying, and how much money it spent in different categories. Financial accountants are analyzing these values by means of conditions and other calculations to determine the financial health of the company.
The profit and loss statement is a critical part of financial accounting. It provides a clear list of all sales per year, expenses and net profit or loss of the company. This statement provides insight into the sales performance per year and the total profitability of the company.
Thecash flow report provides details of the received and paid funds. This part provides insight into the income values specified in the profit and loss statement. Here are the funds received or lost from interest investments in detail.
Statement of Owners or VL ownersThe shareholders' Astonian shows the total net income of the year and how it will be distributed between shareholders or reinvested in business. Publicly traded companies must provide the number of shares, the type of share and the amount of the divided, which are to be paid on shares, based on articles of establishment and agreement for shareholders.
All certified public accountants have complete medium and advanced financial accounting courses. There is no additional designation for financial accounting specialty. The ability for financial accountants must focus on analysis and handling software and data handling tools.