Authenticity in Financial Statements Prepared By Outsourcing Firms

Authenticity in Financial Statements Prepared By Outsourcing Firms

Accounting is a systematic process that comprises varied steps from Recording, Classifying, Summarizing, and Reporting to interpreting the results of the recorded transactions. The significance of accounting is to induce the output of the recorded transaction summary into a purposeful statement or detail at the end of a particular accounting period. The statements generated at the end of the company's financial year are referred to as FINANCIAL REPORTS.

Meaning

Financial Statements are the end product of the accounting process after a specified period (particularly one year), which are the reports prepared by the company's management to excess the company's present financial position and performance and which also act as a guide for the company's external users about the functioning of business throughout the given previous tax year.

Types of Financial Statements

• BALANCE SHEET

• PROFIT & LOSS ACCOUNT

• CASH FLOW

• STATEMENT OF SHAREHOLDER'S EQUITY

Qualitative Aspects of Financial Statements

• UNDERSTANDABILITY

• RELEVANCE

• RELIABILITY

• COMPARABILITY

• CONSISTENCY

• ACCURATE

• TRUE & FAIR VIEW

Financial Statements and Outsourcing Companies

There are several end users of the financial statements which incorporate: Management, Creditors, Employees, Customers, Shareholders and Debenture Holders, General Public, Government Bodies, Tax Authorizes and Financial Institutions. Other than proving business information to these users, financial statements mirror financial position and net cash flows for the specified period. This information is crucial to making the future predictions and take present decisions regarding business. Business' income position can helps to analyze the market trends for the company.

These above purposes are only served if the financial statements must be extremely accurate and reliable and furnish true and fair position of the company. There are varied qualitative aspects of the financial statements, which are shown above, that are distinctly vital to be composed in them. Theses prerequisite of the financial statements are only be fulfilled if they are formulate with highly correctness and unbiasedness.

Sometimes handling other business operations, sometimes accounting work is neglected. And this can result in missing of numerous transactions, several errors of duplication, frauds or less reliable statements. Bias may be present even in financial statements created by internal staff.

Outsourcing firms immediately spring to mind when considering the enhanced quality of the financial statements. These firms provide financial statement preparation as a stand-alone service to businesses. They provide a very exact and dependable output service under this category.accurate and reliable. There are countless reasons to belief on the financial statements prepared by the Accounting outsourcing companies and some are listed below:

Outsourcing firms have access to latest and advance accounting software, hence providing full automation in your accounting process.

• Automation eliminates human errors like omission or duplication.
• There will be no chance of bias, and the financial accounts will be provided to you in an honest and equitable manner.
• Employees at the outsourcing organization are extremely knowledgeable and skilled. They apply their knowledge to the game of eliminating probable accounting or arithmetic errors.
• As a result, they will only focus on your tasks. minimizing the likelihood of mistakes.

Outsource Your Financial Statements Preparation to Us

Accounting Outsource Hub creates financial statements based on accounting regulations. We often checked in to see if there were any updates. . We regularly monitored them for any new developments. . You can select the financial statement preparation solution that best suits your needs from a variety of options. You simply need to pay.

Our services include:

• Profit & Loss Account
• Balance Sheet
• General Ledger
• Cash Flow Statement
• A/P and A/R Aging Summary

Read more about us, here!