Question

list and discuss the 3 financial reporting tools. Be sure to discuss the purpose of each tool. Also, discuss its components as well as the advantages and disadvantages. Must be 2-3 pages long

Answer 1

Financial re 1). On-premise financial reporting systems-These are covered with a single license, and are osted on the clenfs local server. They qualily as the ost expensive ones.due เสี e lact tha' they require compex setup and occasionaTy some hardware insultion Tools 2). Sottware-as-a-service (SaaS) financial reporting systems-These are usually paid per moeh and are hosted on the vendors server. The bisness owner is not responsitie tor installation, uating and maintenance hosted financial re ystems lotal these oler free isic plans, and quality as the most adordabl ones due to their unvesal access and to update them or to pay for maintenance. lact that the client doesn't need Components of Financial Reporting 1). prott ad loss statement lhe acome Statement K alsa letened to as pratit and Loss μ u Statement It show; an entir s mar s ara nata sor a particular period od time The come statcment presents the periods income and expenses, and the reslting net income or loss 2). Statement of change in owners' equity: Capital is afected by lour edements.is incresaesed by oner contributions and income, ard decreased by wtklrawals and expenses. The Statement of Owners Eguity shows the morement in capital as a resuol these elemenes 3). Balance sheet (stateseat ot Rnancial Position A Ralance Shbeet shows the linancal position or coedition of a company as ol a cestain date, Hence, it is also calif Statement ot Financial position The alance She。刂īresents the total resoones oned and con "d ny the cont amy assets and tw c turns against them (lahaties and capital 4). Statement o Cash Row: Accoumtants iollow the accral hasis in measin income and expenses Howerer, some users of acconting indormation are interested in the cash transactions of the company, hence the need to present a Statement o Cash Hows. Advantages of Financial Reporting Tools 1). Simpltied finaocial ptocessesIn soe companies, reports are created by employees who do not have a ackurond in finance.Icanbe time-consaming to provide these employees end urse training on new sothware. Therefore, consider products that use Microsol Word and Excel to colect data and lor naitative contrilutions, as they are easiet to use 2). Real-time updates, The availability ot realime updates leature can roduce overall seporting time as well as time spent in evisions. For hher eltciency the updates should be antomatically made to al linked documents and epoets 3)Scalability.Sohrtions that chuge by the contribalor or by the report, and thoce that limit the mmber ol contribnors are not ideal applications Shm these ty es o so tiote and locus on selectmq a sam de Enixial lepotna s trion that makes it easy to produce v tully ary t pe o report includi지 customized presentations and reposts that uslly take tirme to prepae. )Wotkikw management. The solware shoukd be abe to automate the reporting process includingas such as setting and managing deadlines o coutrlutioas, delegating esonsiblties manag ng eviews and sign-otls, sending alets when required, track ng edits and souces, and shoowing the lawes 5). Easier mumber uency coonerson, i The financial reposting sottware shotuld make it easy tor urs to handle mmbes by providing features such a and number fomating. This can eliminate emploree frustration and sare them time while preparing tinancial reports Disadvantages of Financial Reporting Tools: 1). Loss ot Data or Service: When a business is reliant on accouting sotrware, any loss ot service due to a power o computer outage coutd cause a work disuption Work disruptions can prevent the input ot new intomation as well as prevent access to stored intormation dditionaly, it riformationis not proper backed up computer outage cou result in lost financial data. 2). Incorrect Intormation: The inlomation in an accomting system is only as valid as the inormation put into the system. Since most accomting systems requre some manual tiput o data financial test its cou be ncorrect un ess all nput data เร Ienewed llt en s a tendency to o T tere "the inal reports or oup ol an accounting system, it may be didlicult to lnd laulty inlomation