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FINANCIAL REPORTING AND ANALYSIS
(1). (www.accountingtools.com) defines financial reporting as the releasing of financial results to
the stakeholders and other interested parties for example the general public. It involves many
elements that include the financial statements of an organization, the annualized reports which
are published and other information of a financial nature that the company wishes to publish.
Financial analysis on the other hand is the assessment and evaluation which is done to the
company’s financials such as budgets and projects, it aims to show whether the company is
liquid or solvent enough.
Differences between the two are that, financial reporting is used to show/depict the business’
position at a certain period of time be it in its assets or profitability. Whilst financial analysis
deals with forecasting and evaluating the financial position as presented by the financial reports.
The two are equally important because when it starts with financial reporting, interested
stakeholders will know certain financial information that they want but this is just a snapshot.
