Tuesday, November 9, 2010

Reference:
Patel, A. (2010, Jun 28). “Financial Reporting: Now it is easy to create your own financial report”. From http://www.evancarmichael.com/Accounting/4969/Financial-Reporting-Now-it-is-Easy-to-create-your-own-Financial-Report.html

Summary:
In the article “Financial Reporting: Now it is Easy to create your own Financial Report” Akash Patel explained why the financial reporting helps you to control your budget. There are five steps to make a good financial reporting for expenses and income every month. First, you need to use a software program to register any financial procedure. Second, you should divide financial data to different groups. Third, you record the financial data in financial reporting. In this step, you exclude tax from your income. Fourth, you record your income after tax. Fifth, you should sum up your expenses, then they are deducted from your income.

Reaction:
I agree with the author as he showed the relationship between the good financial reporting and saving the budget. Also, I think he is creative, because he can explain the steps of preparing financial reporting with clear examples. However, I disagree with him when he said the annual payment divides into twelve equal parts, for I think some months benefit from the annual payment more than other months. In addition, I think his conclusion isn’t obvious because he didn’t give an example for the unusual information.

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