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The Benefits of Making Accounting Reports

Are you an entrepreneur and don’t know which accounting reports deserve to be highlighted in your business? Having a company requires the basics of accounting, no one longer you plan to outsource these services.

Continue to follow this article to better understand which accounting reports are most important to the trajectory of your business.

What are accounting reports?

Reports or financial statements are documents that represent the economic and financial data of an organization in a given period.

That is, they are records that follow the financial movement of corporate assets, composed of indicators such as expenses, expenses, costs, billing, profit and taxes.

The periodicity of the reports varies according to the company’s internal policies, which indicate whether they should be done monthly, quarterly, every six months or annually.

How important are these documents?

In addition to gathering important information about the company’s asset stake, it is from these documents that accounting managers can control expenses, monitor profitability and even reduce the organization’s taxes.

It is the accounting reports that allow the management or management of the company to know about the situation of the enterprise and evaluate important decisions, increasing the chances of success.

What are the main accounting reports?

There are four main models of accounting reports that can assist in the development and financial maturity of your company. They are:

Statement of Income for the Year (DRE)

Mandatory for all companies, the DRE attests to the company’s net revenue within a certain period of time, demonstrating how much the enterprise obtained from the sales made.

Cash Flow Statement (DFC)

Also mandatory for all companies, the DFC comprises entries, outflows and balances, but without showing the profit. It generally analyzes short periods and attests to how much the business has in cash, in its financial investments and in bank accounts with immediate liquidity.

Statement of Retained Earnings or Losses (DLPA)

Mandatory to limited companies, the DLPA indicates changes in the company’s equity, allowing to identify profits and losses, evaluating whether investments are being adequate and profitable.

Balance Sheet (BP)

The balance sheet is also among the mandatory accounting reports for all companies, being responsible for presenting the equity of the enterprise. After the liabilities are deducted from the assets, it is BP that guides the entrepreneur on the extent of their available assets and resources.

How to prepare your company’s accounting reports?

Accounting reports should be objective, data-based and present indispensable information such as gross, net, expense and profit of the organization.

It is through them that financial institutions will assess the condition of your company in case of search for loans and financing, since the bank needs to know and understand the risks of providing credit to your business.

You can also invest in financial management applications and automate the accounting reporting process, using technology to integrate information and gather the data needed to control your business assets.

If you do not have enough technical skill and find difficulties in producing your company’s accounting reports, it is worth investing in a specialized company and triggering an accountant.

Conmax manages your company’s accounting safely and reliably!

Based in Fortaleza and São Paulo, but working directly in several states of the country, we are sure to be adding value to new customers, helping them through corporate accounting to further develop their business. We have a team composed of more than 25 professionals of higher education, continuously trained and specialized in various areas of activity.

If you are having difficulty in accounting your company, do not waste time and talk now with our service. Be more of a company positively impacted by our service.

Talk to one of our attendants directly through Whatsapp

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