What are the advantages and disadvantages of a report?What are disadvantages of reports? - WisdomAnswer The report can include sales data, financial results and successful strategies like a recent radio ad campaign. It is the best source of information about the business performance and financial well-being of a business. Traditional performance reviews and approaches to feedback are often so bad that they actually make performance . Understanding the typical causes of inaccuracies and deploying a net of internal controls, including powerful financial software, can help reduce the likelihood of errors. The primary methods used to ensure accuracy of financial reporting are internal accounting controls and external audits. Know what you're responsible for producing. Petryni holds a Bachelor of Science of planning, public policy and management from the University of Oregon. Intentional misrepresentation of financial statements can result in legal action, arrest and imprisonment of executives, penalties and fines. As a Congressional press secretary, Lita gained firsthand knowledge about how to work within and around the Federal bureaucracy, which gives her great insight into how government programs work. Attorneys with you, every step of the way. People who own shares in a closely held private company may have a lot of assets but little chance to actually turn those assets into cash. Manual processes increase the likelihood of simple accounting mistakes, such as transposing digits, misplacing a decimal point, double-counting or failing to record an activity in a ledger. The companys CEO and other senior managers rely on internal financial reporting for day-to-day decisions, such as when to buy inventory or how to set product prices. Also, businesses that want to offer shares of stock to their employees as incentives find that recruiting with this incentive is much easier when the stock is sold on the open market.\n \n\n
The negative side
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Regardless of the many advantages of being a public company, a great many disadvantages also exist:
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Costs: Paying the costs of providing audited financial statements that meet the requirements of the SEC or state agencies can be very expensive sometimes as high as $2 million annually. While controls are not iron-clad safeguards, especially in cases of orchestrated fraud, they are meant to provide a reasonable level of protection against financial reporting misstatements. Other important reports include the business plan and mission statement, which provide direction for the company and benchmarks for management and employees. Conversely, underreporting cash flow can mean missing opportunities for investment income or interest. Company value: Company owners benefit by knowing their firm's worth for a number of reasons. Digital Marketing Agencies, Apparel, Footwear and
Given the plethora of standards and regulations governing financial reporting, combined with the pressure for timeliness, its easy to see how companies can make mistakes. An annual report provides you with the platform for demonstrating accountability to all stakeholders. We're available Mon-Fri 5 a.m. to 7 p.m. PT and weekends 7 a.m. to 4 p.m. PT. After completing her MBA, she managed finances for a small nonprofit organization and for the facilities management section of a large medical clinic. She designs and teaches online courses on topics such as investing for retirement, getting ready for tax time and finance and investing for women. accy231 Flashcards | Quizlet Fines and penalties. by. Pros and Cons of a Business Report? - Fleximize \"https://sb\" : \"http://b\") + \".scorecardresearch.com/beacon.js\";el.parentNode.insertBefore(s, el);})();\r\n","enabled":true},{"pages":["all"],"location":"footer","script":"\r\n
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Lita Epstein, who earned her MBA from Emory University’s Goizueta Business School, enjoys helping people develop good financial, investing and tax-planning skills. While getting her MBA, Lita worked as a teaching assistant for the financial accounting department and ran the accounting lab. Because financial reporting is so important to internal and external stakeholders, there are significant risks if errors appear in financial statements or other communications. Many times, these values are set too high for private companies, which can cause all kinds of problems for other owners and family members.
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Going public sets an absolute value for the shares held by all company shareholders and prevents problems with valuation. Increased liquidity: Liquidity is a company's ability to quickly turn an asset into cash. Disclosure: A private company can hide difficulties it may be having, but a public company must report its problems, exposing any weaknesses to competitors, who can access detailed information about the company's operations by getting copies of the required financial reports. Inaccurate information can lead to poor decisions. Examples of disconnects include misunderstandings about how to handle accounting estimates, such as reserves for possible bad debt. People who own shares in a closely held private company may have a lot of assets but little chance to actually turn those assets into cash. Chandra 1974; Lee and Tweedie . Business reports are documents prepared by employees or managers that provide regulators, investors and creditors with information about the performance and strategies of the business. Larger organizations often have employees within the company who are designated to complete this essential undertaking.
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