Financial Reporting Services In India
In every industry, you might have seen a service or manufacturing sector. However, it is feasible to have a variety of departments that work every day in order to accomplish the Indian company’s objectives.
The operation of all departments shares an underlying thread that can be identified as an Accounting & Finance Department. The accounting and financial aspects of each department are documented and presented to various people.
There are two kinds of reports that are stipulated;
- Financial Reporting – for various stakeholders
- Management Reporting – for Internal management of an organization.
In light of the many stakeholders, as well as other regulatory and statutory requirements the financial reporting process is an essential function for any business. Financial Reporting is a must for all organizations in the present. Every company must know how it performed during a certain financial year.
Financial reports aid in evaluating the company’s financial performance, and thus the necessity for analysis and reporting on financials is required. Businesses that use financial reporting services can create an analysis of their performance as outstanding, excellent adequate, acceptable or inadequate.
What is Financial Reporting?
Financial reporting is a procedure that is carried out by every company to analyze the financial performance of the business in the preceding fiscal year and every quarter. Financial reports give the company the right information regarding the performance of the business in the past as well as its current performance.
Financial reporting also involves the disclosure of financial data to the various stakeholders concerned about the financial performance of the organization and the financial condition of the company, over the accounting period.
The stakeholders involved in financial reporting include investors public, governments, government agencies, and lenders. For the above companies, financial reporting should be conducted quarterly and every year. The final result of accounting is said Financial Reporting.
Objectives of Financial Reporting
The goals and objectives for financial reports are described below:
- The information provided is detailed to the managers of an entity used to aid in planning the organization, benchmarking, and decision-making.
- The data is provided to lenders, investors promoters, creditors, and investors which allows them to make informed and wise decisions about credit, investments, etc.
- Give detailed information to the public and shareholders in relation to companies that are listed on the stock exchange about the different aspects of the company.
- Provide information about the financial assets of an organization and the claims that are made against the resources (liabilities and owner’s equity) and how those resources and claims have been through changes over a certain time.
- Information on the way an organization uses its resources.
- The sharing of information with different parties in connection with performing their fiduciary duties and duties.
- The company must provide all kinds of details to the auditors statutory to make audits easier.
- Promoting social well-being by taking into consideration the needs of its employees, its trade unions and the Government.
Importance of Financial Reporting Services
The significance of financial reporting services is recognized by every business. They are required by every organization and every shareholder due to a myriad of reasons. These points underline the significance of financial reporting.
- It makes it easier to conduct the statutory audit. The auditors appointed by the statutory authorities are required to examine accounts of an organisation in order to form an opinion.
- It aids the business in complying with various laws and regulations. The companies must file financial statements with the ROC (Registrar of companies) as well as Government Agencies.
If listed companies are involved Annual and quarterly reports must be submitted to respective stock exchanges as well as to the ROC for publication.
- Financial Reports constitute the basis for financial planning and analysis, benchmarking, and making decisions. They are utilized for the reasons mentioned above by a variety of shareholders.
- Financial reporting can help companies to raise capital both overseas and at the domestic level.
- Based on the financials the public can evaluate the financial performance of the business and also its management.
- In order to facilitate bidding, management of labour government supplies, bidding. Companies must provide their financial statements and reports.
Essential components of the Financial Reporting Process
The most important elements in financial reports are:
Statement of income
An income statement can be regarded as the most crucial element of financial reporting. The exact analysis of a company’s earnings (or the loss) is reported in the income statement.
In order to prepare the income statements, it is necessary to determine the net profits or losses. To determine this, you need to subtract the total earnings from the total costs of products that you sell. The cost of selling goods is calculated using the opening stock and net purchases less the closing stock.
The second part of the statement of income is called the net loss or profit of a business. The net loss or profit is calculated by subtracting gross loss or profit from the operational expenses, including tax wages, salaries, rents and many others.
The balance sheet
A balance sheet is an important aspect of financial reporting that illustrates the capacity of the company to meet its obligations and debts in comparison to its total debts.
Non-current assets like computers or laptops, computers and office furniture are included in an account of balance sheets along with those assets that are currently in use. The assets in the current state to be recorded include inventory, accounts receivables and cash.
Non-current liabilities like trade overdrafts and trade payables are also documented. The balance sheet also reveals the equity position of the company over an epoch.
Cash flows
In the case of cash flow, it is the following aspect in financial reports. It examines the company’s internal and outward cash flows. Inflows and outflows of cash can result from operations, investments as financing and operations.
The cash flows generated by operations usually focus on the day-to-day operations of the business. Purchases of inventory and sales are considered to be part of the business’s processes.
The investment is linked to the costs and earnings of the long-term programs for the project. When financing is a cash flow, it is tied to the selling of shares and disbursement of dividends.
Modifications to Equity
The final element of financial reporting is the changes that occur in equity. It also includes the amount and the sources of equity fluctuations.
Any changes that occur during an elapsed time are examined by the change or increase of the balance of the starting point relative to the end balance. This is usually a measure of the equity composition which goes shifting from time to the.
What are the Accounting & Financial Reporting Services Offered in Odint Consultancy?
We are Odint Consultancy, we have an expert team who works to ensure that you can meet the requirements of your financial reporting using these services.
- Preparation of Financial Statements in accordance with Indian GAAP, IND-AS or IFRS for individual entities or groups as needed.
- Condensed Statements for the Subsidiary Company and its divisions.
- Contacting those who are the Statutory Auditors.
- A properly-prepared financial report is essential for decision-making and management.
- Regular ( monthly, quarterly or half-yearly or annual) reports and profit centres, divisions or divisions reports, projects or product-based reports as well as analysis of revenue from employees and the contribution of employees, as well as other analyses and reports that are based on the requirements.
- Financial Preparation Support, as well as accounting for post and pre-merger transactions.
What's the reason Financial Reporting Services must be outsourced?
For any business, financial reporting is a crucial instrument. Financial reporting is the process of collecting information, summarization, analyzing and presentation of the financial performance of a company.
The outsourcing of financial reporting services to an expert such as Odint Consultancy could bring your company a lot of advantages.
- Spend less time in the process of analyzing and writing financial reports.
- Conserve money by not wasting your money on expensive financial software.
- Effective and better decision making
- Affordable and reliable analysis of information.
- Concentrate on your primary business operations.
- Quick and accurate service.
- Affordable and high-end services that are cost-effective and high quality.
What are The Financial Reporting Services offered by Odint Consultancy?
In Odint Consultancy, we have highly skilled and trained professionals who can provide effective financial report services. We can provide you with the following financial statements that are professional:
Revenue Statement
An income statement is an all-inclusive overview of expenses, costs and income that has been collected over a certain amount of time. The time frame typically is a financial year or one quarter. The income statement may also be known as the profit and loss statement or income and expense report.
Revenue Statement for Month by Month
Statements of income by month are created to provide full information on the prior twelve-month period. The statements are presented each month.
Balance sheet
Balance sheets are the primary financial statement. The balance sheet reveals the net equity of the business as well as liabilities, assets and assets on a particular date.
Statement of cash flow
The statement outlines the cash flow activity of the company. The cash flow statement provides the sources and purposes of cash in the particular year.
Bank Reconciliation Report
The report on bank reconciliations provides details about the balance of cash on the company’s accounts on a specific date. The reconciliation report settles balances by comparing them to the amount displayed on the statement of the bank account of the company.
Payroll Registration
The payroll register shows all of the necessary information in an alphabetical listing of every employee who was paid in the month. Payroll taxes and other deductions associated with the gross salary are listed.
Journal Entry, Check Register and Journal
A journal entry register shows every cheque written in one particular month. The register links the cheques with general ledger accounts debited by the bank. The register also shows the dates on which the check was issued.
Detail General Ledger Report
This report outlines all of the activities of the company during one particular month.
Business Analysis Report
The business analysis report contains details on the financials from the statement of income, balance sheet, and cash flow report. This data is useful in the calculation of performance indicators. The report also assists in analyzing how the finances of a company.
Financial Analysis Report
This report aids in evaluating your balance sheet for the current month against the balance sheet. This report is essentially a summary of the changes in equity as well as liabilities, assets and.
Operations Analysis Report
The report details the expenditures of the company, its costs, and sales for each category. The report provides details for a specific month and compares the data between previous years and the present year.
We also provide management reports as well as sales tax reports purchase reports and sales reports.
Conclusion
The significance of financial reporting services is acknowledged by every business. Although, they are expected by every organization & every shareholder due to a myriad of motives.
If you still have any queries related to financial reporting service, we are ODINT Consultancy, here to help you out in each & every step of yours.
FAQ’s
The principal purpose of the accounting statement is to give information regarding the performance of operations as well as the financial condition as well as the cash flow of an enterprise.
Financial reporting involves the process of releasing financial results and other related information to management as well as external stakeholders (e.g. regulators, customers, investors) regarding the performance of the business over the specified time frame.
The majority of Indian firms adhere to Indian GAAP in the preparation of their financial records.
The primary purpose of a statement of financials is that they present details regarding the performance of operations as well as the financial condition and the cash flow of an enterprise. This information is utilized by those who read financial statements to decide on the distribution of resources.
Three main purposes that financial reportage serves:
- Provide investor information.
- Monitor cash flow
- Examine the liabilities, assets and equity of the owner.
There are two kinds of requirements for financial reporting:
- Legal Requirements
- Requirements for Regulatory Compliance.
Financial Reporting Package is the statements of profit and loss for each brand, in addition to any other revenue or financial information that is contained in the annual and monthly reports provided by Seller to Buyer.