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To make decisions that are well-informed, the management of a company gleans information from different sources including financial statements. Therefore, financial statements are official documentation of the activities of finance of a company, individual, or other entity. Financial statements are also recognized as financial reports. Information on the financial statement is presented in an organized way and in a manner easy to comprehend. Provided the significance of financial statements in decisions of investment, a larger part of the strategy focuses on how a business is obligated to present its financial information and utilize such data to become victorious in the economic rivalry. Mostly, the objective of financial statements is to guide the senior officers in integrating their business insight to discover the best methods to steer the organization towards profitability. When making decisions concerning business, accurate financial information is vital. Bigger companies typically have a complete department of accounting that carries out daily functions of accounting, along with reconciling every account, reviewing the information for accuracy, and analyzing the information. Nevertheless, this can be difficult for small businesses. Cash is vital in a small business. Money is needed to make payroll, pay bills, as well as achieve other short term requirements of the business. Perceptibly, profit is also important

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