Why are financial statements useful to employees?

Answer 1

Advantages of Financial StatementsGoals financial statements are supposed to accomplish. The intent of financial statements is to provide information useful in economic decision making. In particular, the data should be useful in making investment and credit decisions. Financial statements should provide a reliable indication of a company's financial position, operating results, and changes in financial position. Also, statement components and categories should aid in decisions. Financial statements may provide information in addition to that specified by authoritative requirements and regulatory groups. Inasmuch as management knows the most about the business, it is encouraged to identify certain circumstances and explain their financial effects on the enterprise.

Answer 2

Financial statements are used by businesses to view their gains or losses throughout the year, generally prepared by their accountant. throughout the year businesses also have to file quarterly taxes. the financials provide the results that taxes are based on throught the year and at years end.

Answer 3

Employees. Employees and their representative groups are interested in information about the stability and profitability of their employers. They are also interested in information which enables them to assess the ability of the enterprise to provide remuneration, retirement benefits and employment opportunities.

Answer 4

Your past and future success is transparent in your Balance Sheet. Your past and future activity is reflected in you P&L. Never underestimate the tale that will be told to a skilled eye when it comes to your financial statements; P&L and Balance Sheet are totally transparent.

Answer 5

Primarily answers the question of "where does (did) all the money go?" for both businesses and individuals. Lots of other benefits but that is the primary one, I think.

Answer 6

So that you don't have any cooped problems