A New Company

1.     CheckPoint: A New Company

·         Write a 200- to 300-word response to the following: You have been hired into a new company to oversee the accounting department. What type of financial reports would you expect to see in your department? How will you use the financial reports available to you to make business decisions?

One type of financial report I would expect to find in an accounting department would be balance sheets.  Balance sheets are used to show your incoming and outgoing in order to balance the two together and ensure you are not spending more than you have. It can also be used to see where you may be able to spare cash for a major expense.  Another type of financial report would be a cash flow statement or income statement. Cash flow statements show how much income your company is bring in. Cash flow statements are used to monitor all incoming cash and ensure you are, not only making a profit, but can be used to ensure income stays within expected levels.  One other type of financial statement you would find in an accounting department would be a statement of revenue.  A statement of revenue shows what is incoming and outgoing for the financial period, basically it shows your net profit and net losses.  A statement of revenue can show you your company’s net worth.  You can also use it to compare with other financial years to see how much growth or decrease you have had.  This kind of statement can show you which months are best for your company and which months you are slow.