Financial statements provide various important financial information that helps investors, creditors and analysts evaluate a company’s financial performance. A lot of the financial information in financial reports is required by law or by accounting standard practices. Financial reporting helps management communicate the past successes and future expectations of the business. In addition, financial reporting is significant to your business for a variety of reasons including:

• Tax position
• Reporting financial operating performance
• Evaluating cash flow
• Management decision making, forecasting and planning

Financial reporting includes:

• External financial statements (income statement, statement of comprehensive income, balance sheet, statement of cash flows, and statement of stockholders’ equity)
• Notes to the financial statements
• Quarterly and annual reports to stockholders or stakeholders
• Financial reports to governmental agencies including quarterly and annual reports to the Securities and Exchange Commission (SEC)
• Documentation pertaining to the issuance of common stock and other securities

Financial reporting uses financial statements to disclose data. The information is vital for management to make decisions about the company’s future and provides information to capital providers like creditors and investors about the profitability and financial stability of the company.

This certification was developed to provide the user with a holistic overview of the financial statement preparation, reporting and auditing process. It includes concepts required for development of accurate financial statements (GAAP Principles) to elements embedded In each of the major financial reports. We also cover requirements of XBRL and Management Discussion and Analysis. In addition, we take a look at Generally Accepted Auditing Standards to give the participant an understanding of the requirement of the external auditor. This is useful regardless of your entity type. Understanding the principles required in an external review can be essential to ensuring your financial statements are in accordance with GAAP.