Accounting reports convey vital information about cash, profits, and financial position to the owner and key stakeholders of a business. This program explores the content and format of the three key accounting reports: the cash-flow statement, the profit and loss statement, and the balance sheet.
Interviews with working accountants and financial managers show how these reports are used within a business for analysis and decision making. In addition to various reporting functions, the program introduces viewers to principles of data storage, the basics of financial spreadsheets, and some examples of accounting and bookkeeping software. Viewable/printable educational resources are available online.
1. Introduction to Accounting Reports (04:19)
Financial reporting or bookkeeping should be sorted and categorized so that similar transactions are grouped together. Computer software packages allow access to reliable data, making transactions extremely accurate.
2. Accounting: Reporting for Cash (04:57)
A cash flow statement report cash inflow and outflow. It reports on cash flow from operating, investment, and financing. Business owners can improve cash flow in a number of ways.
3. Accounting: Reporting for Profit (04:37)
The profit and loss statement sets financial targets and formulates an action plan. Net profit is calculated by subtracting expenses from revenue. It is vital to minimize expenses or maximize sales in a financial year.
4. Accounting: Reporting for Position Assets (02:49)
Reporting for position is the future financial assessment of a business. It is done through a balance sheet that discloses assets, liabilities, and owner's equity.
5. Accounting: Reporting for Position: Liabilities (02:40)
Liabilities are monies owed to outside entities. Current liabilities are those that must be repaid within the next 12 months, such as overdrafts and short-term loans. Non-current liabilities must be repaid over a longer time span than 12 months.
6. Accounting: Reporting for Owner's Equity (04:46)
The equation to work out total owner's equity is owner's equity = assets - liabilities. Owner's equity is the owner's investment or capital in the business. Three components of owner's equity are capital, profit /loss, and drawings.
Financial Reporting for Business (DVD)
Time: 26 Minutes