There are several benefits of creating a financial report for a firm. We can list them as follows:
- It improves the debt management of a firm.
- It helps in managing the liabilities through loan management and credit management.
- It helps in real-time tracking of the accounts, which aids in liquidity management. The information of available funds for business helps the firm in making expansion plans.
- It helps in identifying the trends of past and future. A comparative study can be done for creating business forecasting.
- It is a helpful tool in the planning of the business. To make sound business decisions, companies need accurate information on the availability of capital.
- It enhances the quality of business decisions taken by public and internal management.
- It helps in maintaining transparency with customers.
- It helps in maintaining the share prices of the firm and treating all the investors equally.
- Employees understand the company’s growth potential, and hence job security is increased. It, in turn, decreases the employee turnover rate.