why is financial report is very important for employees and customers?

Answer 1

Financial report provides information that indicates the health of the company. For example, what's the cash flow, what's on the balance sheet, debts, assets etc.

It is important for employees to know whether they have a stable job, or if they should be looking elsewhere. In large company, employee can see how much his business unit is making compare to others. If management might decide to sell off or disassemble an unprofitable unit.

It is important for customers because customers would like to do business with companies who will stick around to provide on going support and services. Just think that if Microsoft is going out of business next year, you probably don't want to buy a computer running their operation system.


Best wishes.

Answer 2

Financial reports basically give important information that the customers and employees need to know about the business they are dealing with. Financial reports are statements that indicates the results of operations of the business, employees are interested in knowing these information so that when they ask their boss for a raise they cannot accept a NO answer because the financial reports show it can. Financial reports are statements showing the status of the business which means if it has much debts than what they own. Consumers as well would like to know which company will last for long time and will want to patronize base on their status in the economy.

Answer 3

actually financial statements is very important for too many parties inside and outside . like investors have to know the financial situation and the growth of the company before they make and decisions . customers for example wont buy electronic device with warranty for 2 years unless this company is in good situation to continue for more than 2 years . financial statements is important for government to get taxes . finally if you work for a company that doesn't make enough return on investment . then better look for another job