Importance of Maintaining Accurate Financial Statements Research Paper

Importance of Maintaining Accurate fiscal Statements - Research Paper ExampleThe paper will explore why accurate pecuniary statements be important for outside business interests Customers Customers are external parties that deal with the confederacy by purchasing its products and work and are therefore interested in the fiscal statement of a alliance that needs to be accurate. Customers would be interested in the accurate financial statement for them to be able to recognize how the association spends its funds and manages its debts. Accurate statement of financial position and statement of comprehensive income will show the customers how the company is performing in terms of the profits the company makes relative to the debts it incurs, or the amount the company spends on its marketing strategies in comparison with operations (Horngren, Harrison & Oliver, 2012). A customer would be interested in the financial statement for them to be able to gage whether the company is profita ble and would continue as a qualifying concern. If the financial statement reflects that the company may go under receivership, the customer may get a good picture and strategies on where they will get their products in case the business collapses as reflected in the financial statement. ... Customers require that the companies they deal with handle themselves responsively toward the environment and giving back to the society done corporate social responsibility. Therefore, accurate financial statement should contain corporate social responsibility that customers slang become increasingly looking for in the company. This is because through financial statement customers would be able to know whether their preferred companies measure the overheads, returns, and their impacts on corporate responsibility initiative (Williams & Williams, 2006). Customer is always interested in knowing the plans of the management. This can be known only through an accurate financial statement that cont ains the department of executive managers discussions and digest of what had happen in the past and the future prospects. The management analysis is also considered as one way by which customers who does not understand other parts of the financial statement can gain some important information pertaining to companys plans. Shareholders The shareholders of a company would also be interested in an accurate financial statement so that they can be able to determine whether their investments are being utilized effectively. This would be reflected in the Statement of financial position. through and through financial statement, shareholders would be able to know whether the company is profitable and is likely to pay dividends in the adjoining future or not (Horngren, Harrison & Oliver, 2012). Creditors Creditors just like the customers use financial statements in a subdue of ways. They use the statement of financial position to know the companys