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Importance of
Financial
Statement
Mohammad Anishur Rahman
Business and Financial Advisor
accruon@gmail.com www.fiverr.com/businessfixxx
www.fiverr.com/businessfixxx
Users of financial statement
www.fiverr.com/businessfixxx
Users of Financial statement
 Company management.  Customers
 Competitors.  Employees.
 Customers  Governments.
 Employees.  Investment analysts.
 Governments.  Investors.
 Company management.  Lenders.
 Competitors.  Rating agencies.
www.fiverr.com/businessfixxx
Importance of financial statement
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 Importance to Management
 Importance to the Shareholders
 Importance to Lenders/Creditors
 Importance to Labor
 Importance to the Public
 Importance to National Economy
Importance of financial statement
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 To take decision about business policy
 To take decision about sell off
 To takes decision to right issue
 To take decision to declare dividend
 To communicate their performance with different parties.
Importance to Management
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 Statement of Financial Position or Balance Sheet,
 Statement of Financial Performance, or Income Statement,
 Statement of Change in Equity,
 Statement of Cash flow, and
 Noted to Financial Statements
Elements of Financial statement
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 Enable the shareholders to know efficiency and effectiveness of
the management
 To know the earning capacity and financial strength of the
company
 Decide to making their investments in this company
Importance to the Shareholders
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 To know the liquidity, profitability and long-term solvency
position of a company
 New business deal with new vendors
Importance to Lenders/Creditors
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 Worker’s bonus depends upon the size of profit
 Company's current financial position to payoff employees salary
& wages.
 Company's future prospects to work with them
Importance to Labor
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 Business is a social entity. They have to take part in
public sector
 Corporate social responibility
Importance to the Public
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 The rise and growth of corporate sector
 Tax authorities have an interest on the company's financial
statement
 Registrar of companies have also an interest on the company's
financial statement
Importance to National Economy
Thank You
For More Details
 My Blog: www.accountingprime.com
 Mail: accruon@gmail.com
 Mobile/WhatsApp: +8801515265698/+8801827183724
 LinkedIn: https://goo.gl/mFiHAf
 Visit: www.fiverr.com/businessfixxx to order your Bookkeeping,
Financial Statement & Financial Plan

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Importance of financial statement