Financial statements record everything that happened during a certain time period and enables owners to analyse the financial health of their organisation as well as the internal and external processes of the company. Let us look at how financial statements can be key to a company’s growth.
1. Budgeting and Forecasting
Understanding the past performance of a company helps owners understand what worked for them and what did not. Decisions on immediate and future investments can also be wisely made. The budgeting process allows owners to accurately forecast figures.