Why do customers want financial statements?

Customers need to view the financial statements of the company from which they are procuring goods or services. Big clients would like to have a long-term partnership or contract with the company; thus, they would like to work with a company that is financially stable.

Why do investors look at financial statements?

Financial statements are important to investors because they can provide enormous information about a company’s revenue, expenses, profitability, debt load, and the ability to meet its short-term and long-term financial obligations.

Are financial statements required by law?

The following three major financial statements are required under GAAP: The income statement. The balance sheet. The cash flow statement.

How do you ask a company about their financials?

Identify yourself in the first paragraph. Briefly describe your business and your role in it. Then state your purpose for writing: to request the company’s most recent financial report. Identify why you want the report, and be specific about how you plan to use the information.

What does financial statements do not consider?

Yes, assets and liabilities expressed in non monetary terms are not considered in financial statements. Because anything that can’t be measured in any currency can’t be written down in books of account.

What is the 135 day rule?

Mind the 135-day Rule and the Dates for Delivery of the Comfort Letter. Accountants may provide negative assurance as to subsequent changes in specified financial statement items as of a date less than 135 days from the end of the most recent period for which the accountants have performed an audit or a review.

When someone asks for company financials What do they mean?

Financial statements are the formal records kept by a business, person or entity. These records will include information such as assets, liabilities, equity, revenue, expenses, losses & gains, and are most commonly viewed by company management, investors, creditors or bankers.

When someone asks for financials What do they want?

They want to know how much you make, how much you spend, and how responsible your company’s management is with your business finances. This information is a good indicator of whether you’ll be in business long enough to pay off your loan. That’s when financial statements are invaluable.