How to Make Financial Report Financial statements are a critical aspect of accounting records. Comparative financial statements are just as important, since they enable you to compare two or more years of financial statements. Comparative financial statements arm decision makers with much-needed data to make critical decisions about their business. The following websites present comparative financial statement examples. Become familiar with how they are created and what information is ascertained from these documents.
McGraw Hill The McGraw Hill website allows you to read about comparative financial statement examples without a subscription. The website presents the data of a fictitious company and demonstrates the power of comparative financial statements through vertical analysis. Each line in the documents is compared for each year, providing decision makers with information about trends and areas of improvement. McGraw Hill
Transtutors The Transtutors website provides both the comparative balance sheet and income statement. The website dissects the contents of the financial documents, allowing you to gain better understanding of the information presented in the documents. Transtutors helps you understand the difference between relative and absolute changes, which is very helpful when making decisions that impact your bottom line. Transtutors
Clockwork Accounting This website provides both a comparative balance sheet and a comparative income statement to help you understand the information presented in comparative financial documents. The samples provided on the website contrast the traditional financial document and the comparative financial statement. If you do not have access to accounting software that includes comparative financial statements, templates are provided for you to download. Clockwork Accounting
Tutors On Net With more detailed analysis of comparative financial statements, Tutors on Net highlights some important benefits to comparative financial statements. From the examples, comparative financial statements emphasize the percentage increases or decreases between the two years that are compared in the statements. The data and information derived from these documents are very useful in analyzing other documents for your business. Tutors On Net
Web Books Web Books also conducted a vertical analysis, but used the data for ratio analysis. Decision makers learn a lot about their current financial situation through ratio analysis. Inventory turnover is derived from the comparative balance sheet and provides very insightful information about whether or not a company is efficient. Web Books Comparative financial statements house a lot of information that's extremely useful to decision-makers and their accounting records. Your goal is to create and understand these documents, to ensure that your objectives for your company are progressing. Take the time to thoroughly understand these documents and watch your business move forward.
Author: Steven Lash