Here Are 2 Types of Financial Report Users You Must Know!

Users of financial reports - Financial reports are a tool for management accountability for financial position. This financial report can reflect many things. For example, such as statements of financial position, financial performance reports, cash flow reports, changes in equity reports and also notes to financial statements.

This information is presented where the objective is to show how the company's financial condition actually is. The progress and reputation of the company can also be seen from healthy financial reports.

Unfortunately, if it is still done manually, this misinformation is very likely to occur. In addition, manipulative data and not real time make the results of financial reports inaccurate. This accurate financial report will be very useful for users. There are two types of financial statement users that you should know about, as follows:

Internal User
Basically, users of financial statements are divided into two, the first is internal users and the second is external users. These internal users use financial reports to make decisions quickly and accurately.
This type of financial report will be called a managerial financial report. Internal users will use this report by assessing how management is responsible for managing company resources.
The next way is for internal parties to make decisions about when to borrow or invest company resources. In addition the company can shape expansion decisions or for downsizing. Who is included in these internal users? Check out the list below:

1. Owner
The first user of financial statements is the owner. These owners are the most interested in financial reports. This is because it is not only important to see profits but also to see information on the amount of finance they have for personal income. With this financial report the owner wants to know how much capital the business needs to be able to generate sales revenue.

2. Company Management
The management of the company is the first user of these financial reports. Even though they are people who prepare financial reports, they also consider progress and growth within the company. The management of this company can view financial reports. What is seen is the perspective of liquidity, profitability, cash flow, assets and liabilities, cash balances and so on.

3. Employees
Employees will see the company's financial statements in various perspectives. Employees want to know if the company can give a bonus. In addition, they can also know whether there will be a salary increase from the financial statements of the company where they work.

External parties
These external parties have different goals and interests. The following are some of the external parties that are important for you to know:

1. Investors
The first users of financial reports are investors. These investors as well as potential investors are attracted by the potential returns as well as the safety of their investments. Profit in the future can be seen from the company's financial statements, especially the profit and loss statement.
These investors also need information to be able to make decisions about what to do with their investments. With these financial reports they can decide whether to hold their shares, sell them or buy more shares.

2. Customer
Customers need to view financial reports. Clients who have long-term partnerships or contracts with companies want them to work with companies that are financially stable. This financially strong company can provide sales on credit to customers, provide products and services at discounted prices and so on.

To be able to produce accurate financial reports you can use solutions from SOLTIUS. We are the best and most trusted IT solution provider company in Indonesia. We have a solution in the form of accounting software that can be tailored to the needs of the company, our software can also create financial reports accurately so that it is very useful for users of financial reports.

For more information, please contact Soltius Indonesia or click the following link: https://www.soltius.co.id/id/special-offer/read/accounting-software-akuntansi