The shareholders require frequent reports on how their business is performing. To have objective and useful reports regarding the efforts of management and its results, financial reporting was devised.
I guess you may be wondering - why are you writing such an article at the end of January? Fair question. Statistics show that many people come up with the New Year’s resolutions and by the 3rd week of January, most of them are already forgotten. So I think this is a perfect time for this article.