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Essay Samples > Economics > Accounting and Financial Statements
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Accounting and Financial Statements

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Accounting and financial statement are very vital as they serve to show the financial standing of a particular company. Financial reporting is also very important as it also allows the potential investors to know exactly what they are getting themselves into when they invest in a particular company. This essay describes the financial reporting concept and statements.

Financial statements

These statements, which give the financial standing of a company, are prepared for presentation to potential investors. The main financial statements that I, being the treasurer of our organization is required to prepare include the statements of financial position of the company, the statements of changes in equity, the cash flow statements and the statements of comprehensive income

Uses of these financial statements

The main aim of the preparation of these financial and accounting statements is to reassure the potential investor that the company is worth investing in. the statements give the investor the guarantee that his money will not be lost(Holthausen& Larcker1992). A company which has sound financial statements is more capable of seeking credit from investors than a company which does not boast of sound financial statements.

BDO case study: advantages of belonging to a large international group

The BDO group enjoys a number of advantages with the affiliation to a large international group. Some of these advantages include the access to a large pool of well qualified professionals who discharge their duties well, tax advantages as well as recognition world wide.

These advantages particularly the professional pool would be very helpful to a small organization that as an investor I would like to start. The advice and consulting from these professionals would be invaluable.

As a customer of BDO, one would expect only the best quality service, and the company has proven its delivery record by winning the Alfred P. Sloan Award for Business Excellence in Workplace Flexibility.


It is evident that accounting and financial reporting forms a very crucial part of any business seeking external funding. As such, businesses should hire the services of firms such as BDO that have a proven track record in consulting in this field to assist them secure the necessary funding so that they may grow. 

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