{"id":19614,"date":"2025-03-07T08:55:10","date_gmt":"2025-03-07T08:55:10","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=19614"},"modified":"2025-12-01T07:30:22","modified_gmt":"2025-12-01T07:30:22","slug":"financial-statement","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/financial-statement\/","title":{"rendered":"What are Financial Statements and Why They\u2019re Important?"},"content":{"rendered":"<p>Have you ever found it challenging to keep your financial statements accurate and organized? Manual reporting is prone to errors, and even small mistakes can lead to inefficiencies, poor decisions, and potential financial setbacks.<\/p>\n<p>That\u2019s why using a reliable accounting system like <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro Accounting Software<\/a> is essential. With advanced features, it ensures greater accuracy in your financial statements, reducing the risks that come with manual management. To see how it can support your finance operations, you can try it through a <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/\"><strong>free demo<\/strong><\/a>.<\/p>\n<p>In this article, we\u2019ll discuss the role of financial statements and why they matter for businesses. You\u2019ll also learn how precise financial reporting supports better decision-making and how modern accounting software simplifies the entire process.<\/p>\n<table style=\"border-collapse: collapse; background-color: #fffacd; border-radius: 25px 25px 25px 25px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 15px; border: none;\">\n<h3 style=\"margin-bottom: 10px;\"><span style=\"background-color: #990000; color: #ffffff; padding: 5px;\"><b>Key Takeaways<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\">Financial statements show how much a business earns, spends, and if it&#8217;s financially stable.<\/li>\n<li style=\"font-weight: 400;\">The main reports include the income statement, balance sheet, and cash flow statement, each giving different insights.<\/li>\n<li style=\"font-weight: 400;\">Doing financial reports manually can lead to mistakes and take too much time.<\/li>\n<li style=\"font-weight: 400;\">HashMicro\u2019s Accounting Software makes financial management easier with automated reports and real-time tracking.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-demo-gratis.webp\" alt=\"FreeDemo\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script><div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; *\/\r\n\t\t}\r\n\t}\r\n<\/style>\r\n\r\n<style>\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc > li > ul {padding-left: 20px;margin-bottom: 0;}\r\n\t#list_toc{height:max-content;transition:ease-in-out}\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc_float li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_float li a {padding:3px 7px}\r\n\t#list_toc_float li a {\r\n\t\tdisplay: block;\r\n\t\tcolor:#000;\r\n\t\tmargin-bottom: 10px;\r\n\t\ttransition:all 0.2s ease-in-out;\r\n\t\tfont-size:15px\r\n\t}\r\n\t#list_toc_float li{list-style:none;list-style-position:inside; margin-left:0;}\r\n\t#list_toc_float a:hover{color:#b1252d;}\r\n\t\r\n\t#list_toc_float li a{margin-bottom:0px}\r\n\t#toc_group_float{\r\n\t\tline-height: 24px;\r\n\t\tmax-height: calc(100vh - 100px);\r\n\t\toverflow: auto;\r\n\t\tz-index: 99;\r\n\t\tdisplay:none!important;\r\n\t\tbackground:#fff;\r\n\t\ttransition:all 0.5s linear\r\n\t}\r\n\t\r\n\t@media (min-width:1019px){\r\n\t\t#toc_group_float {\r\n\t\t\tdisplay:block!important;\r\n\t\t\t}\r\n\t\t\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width:768px){\r\n\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t \/* custom scrollbar style *\/\r\n::-webkit-scrollbar {\r\n    width: 7px;\r\n}\r\n::-webkit-scrollbar-track {\r\n    background: #d7a2a4;\r\n}\r\n::-webkit-scrollbar-thumb {\r\n    background: #b1252d;\r\n    border-radius: 15px;\r\n}\t\t\r\n\r\n<\/style>\r\n\r\n<script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n\t\t\/\/ Function to handle click on all <a> elements with href starting with #\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst targetId = this.getAttribute('href').substring(1);\r\n\t\t\tconst targetElement = document.getElementById(targetId);\r\n\r\n\t\t\tif (targetElement) {\r\n\t\t\t\tconst headerHeight = document.querySelector('#toc .header').offsetHeight;\r\n\t\t\t\tconst navbarHeight = document.getElementById('tdi_34') ? document.getElementById('tdi_34').offsetHeight : 0;\r\n\t\t\t\tconst windowHeight = window.innerHeight;\r\n\t\t\t\tconst targetOffset = targetElement.offsetTop;\r\n\t\t\t\tconst scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight) - navbarHeight - 40;\r\n\r\n\t\t\t\twindow.scrollTo({\r\n\t\t\t\t\ttop: scrollTo,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all <a> elements in toc-list and list-toc\r\n\t\tconst titleLinks = document.querySelectorAll('#toc-list a, #list_toc a');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n<\/script>\r\n\r\n<!-- ToC List for mobile -->\r\n<script>\r\n \/\/ Generate TOC based on headings\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  \/\/ Get the element that will contain the TOC\r\n  const tocList = document.getElementById('toc-list');\r\n\r\n  \/\/ Get the element with class 'td-post-content'\r\n  const article = document.querySelector('.td-post-content');\r\n\r\n  \/\/ Find all h2 elements within the article\r\n  const headers = article.getElementsByTagName('h2');\r\n\r\n  \/\/ Loop through the h2 elements and create a list item for each one\r\n  for (let i = 0; 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\/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n        toc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n        toc.style.backgroundColor = \"#FFF\";\r\n\t\tpanel2.style.height = '0px';\r\n\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t  if(window.innerWidth < 767){\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n       \t\t  toc.style.width = '150px'; \/\/ Set width to match the parent element\r\n\t\t  }\r\n      }\r\n      if (currentHeader) {\r\n        tocTitle.textContent = activeLink ? activeLink.textContent : \"\"; \/\/ Update title only if activeLink exists\r\n      }\r\n    } else {\r\n      toc.classList.remove('sticky');\r\n      phtoc.style.display = \"none\";\r\n      toc.style.width = 'unset'; \/\/ Reset to original width\r\n      toc.style.backgroundColor = \"#FFF\";\r\n      tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\tpanel2.style.height = panel2.scrollHeight + \"px\";\r\n\t\ticon.style.transform = \"rotate(180deg)\";\r\n    }\r\n  }\r\n\r\n    \/\/ Attach the scroll event listener to the window\r\n    window.addEventListener('scroll', handleScroll);\r\n\r\n    \/\/ Initial call to handleScroll to set the correct state on load\r\n    handleScroll();\r\n});\r\n\t\r\n\t\/\/ Open toggle TOC\r\n\t  document.addEventListener(\"DOMContentLoaded\", function() {\r\n\t\tvar tocHeader = document.querySelector(\"#toc .header\");\r\n\t\tvar toc = document.querySelector(\"#toc\");\r\n\t\tvar icon = document.querySelector(\".toc-icon\");\r\n\t\tconst tocTitle = document.querySelector('#toc-title');\r\n\t\tconst tocs = document.querySelector('#toc.sticky');\r\n \t\tconst tocParent = toc.parentElement;\t\t  \r\n\r\n\t\t  tocHeader.addEventListener(\"click\", function() {\r\n\t\t\tvar panel = this.nextElementSibling;\r\n\t\t\tif (panel.style.height !== '0px') { \/\/ Check if height is not 0px\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t\tif(window.innerWidth > 768){\r\n\t\t\t\t\tif(!toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = \"unset\";\r\n\t\t\t\t\t}\r\n\t\t\t\t\tif (toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = '${tocParent.offsetWidth}px';\r\n\t\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t\t}\r\n\t\t\t\t}\r\n\t\t\t\tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = \"unset\"; \/\/ Reset width\r\n\t\t\t\t}\r\n\t\t\t\ttoc.style.backgroundColor = \"#FFF1F1\";\r\n\t\t\t} else {\r\n\t\t\t  panel.style.height = panel.scrollHeight + \"px\";\r\n\t\t\t  icon.style.transform = \"rotate(0deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\t\t\ttoc.style.paddingBottom = '24px';\r\n\t\t\t \tif(window.innerWidth < 767){\r\n\t\t\t\t\ttoc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n\t\t\t\t\ttoc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n\t\t\t\t}\r\n\t\t\t}\r\n\t\t  });\r\n\r\n\t\t  \/\/ Close TOC when a link inside it is clicked\r\n\t\t  var tocLinks = document.querySelectorAll(\"#toc .list a\");\r\n\t\t  tocLinks.forEach(function(link) {\r\n\t\t\tlink.addEventListener(\"click\", function() {\r\n\t\t\t  var panel = document.querySelector(\"#toc .list\");\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t  toc.style.backgroundColor = \"#FFF\";\r\n\t\t\t});\r\n\t\t  });\r\n\t\t});\r\n\t\r\n\/\/ \tmake the heading at the center of the viewport\r\n\/\/ \tdocument.addEventListener('DOMContentLoaded', function() {\r\n\/\/     \/\/ Add click event listener to all links in the TOC list\r\n\/\/     document.querySelectorAll('#toc-list a').forEach(anchor => {\r\n\/\/         anchor.addEventListener('click', function (e) {\r\n\/\/             e.preventDefault(); \/\/ Prevent the default behavior of jumping to the anchor\r\n\/\/             const targetId = this.getAttribute('href').substring(1); \/\/ Get the ID of the target element\r\n\/\/             const targetElement = document.getElementById(targetId); \/\/ Get the target element\r\n\r\n\/\/             if (targetElement) {\r\n\/\/                 const headerHeight = document.querySelector('#toc .header').offsetHeight; \/\/ Get the height of the fixed header\r\n\/\/                 const windowHeight = window.innerHeight; \/\/ Get the height of the viewport\r\n\/\/                 const targetOffset = targetElement.offsetTop; \/\/ Get the top offset of the target element\r\n\/\/                 const scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight); \/\/ Calculate the scroll position to center the target element\r\n\r\n\/\/                 \/\/ Scroll to the calculated position smoothly\r\n\/\/                 window.scrollTo({\r\n\/\/                     top: scrollTo,\r\n\/\/                     behavior: 'smooth'\r\n\/\/                 });\r\n\/\/             }\r\n\/\/         });\r\n\/\/     });\r\n\/\/ });\r\n<\/script>\r\n\r\n<script>\r\n    \/\/ Scrollspy function to highlight the active TOC item based on the scroll position\r\n  function scrollSpy(tocClass) {\r\n    const scrollPosition = window.scrollY;\r\n\r\n    \/\/ Find the active h2 and h3 headings based on their position in the corresponding TOC\r\n    let activeH2 = null;\r\n    let activeH3 = null;\r\n\r\n    const tocItems = document.querySelectorAll(`.${tocClass} li`);\r\n    tocItems.forEach(item => {\r\n      const a = item.querySelector('a');\r\n      if (!a) return;\r\n      const href = a.getAttribute('href');\r\n      const targetId = href.substring(1); \/\/ Remove the '#' from the href to get the target ID\r\n      const targetElement = document.getElementById(targetId);\r\n      if (!targetElement) return;\r\n\r\n      const targetTop = targetElement.getBoundingClientRect().top + scrollPosition;\r\n      const nextItem = item.nextElementSibling;\r\n      const nextTop = nextItem ? nextItem.getBoundingClientRect().top + scrollPosition : Infinity;\r\n\r\n      if (targetTop <= scrollPosition + 150) {\r\n        if (a.parentElement.parentElement === tocItems) {\r\n          \/\/ The h2 heading is at the root level of the TOC\r\n          activeH2 = { id: targetId, level: 'h2' };\r\n        } else {\r\n          \/\/ The h3 heading is nested under an h2 heading\r\n          const parentH2 = a.parentElement.parentElement.previousElementSibling;\r\n          if (parentH2) {\r\n            const h2Link = parentH2.querySelector('a');\r\n            if (h2Link) {\r\n              const h2Href = h2Link.getAttribute('href');\r\n              const h2Id = h2Href.substring(1);\r\n              activeH2 = { id: h2Id, level: 'h2' };\r\n            }\r\n          }\r\n          activeH3 = { id: targetId, level: 'h3' };\r\n        }\r\n      }\r\n\r\n      if (targetTop > scrollPosition + 150 && nextTop > scrollPosition + 150 && !activeH3) {\r\n        \/\/ Reset the activeH2 when there are no more active h3 headings\r\n        activeH2 = null;\r\n      }\r\n    });\r\n\r\n    \/\/ Update the active state for the TOC items\r\n    tocItems.forEach(item => {\r\n      item.classList.remove('active');\r\n      const a = item.querySelector('a');\r\n      if (a) {\r\n        const href = a.getAttribute('href');\r\n        const targetId = href.substring(1);\r\n        if ((activeH2 && activeH2.id === targetId) || (activeH3 && activeH3.id === targetId)) {\r\n          item.classList.add('active');\r\n        }\r\n      }\r\n    });\r\n  }\r\n\r\n  \/\/ Call scrollSpy for each TOC on window scroll\r\n  const tocClasses = ['list_toc', 'list_toc_float']; \/\/ Add other TOC class names here if you have more than two instances\r\n  tocClasses.forEach(tocClass => {\r\n    window.addEventListener('scroll', () => scrollSpy(tocClass));\r\n  });\r\n<\/script>\r\n\t\r\n\r\n<!-- ToC List for desktop side bar, diganti jadi inject by php, di code snippet \"Sidebar Accordion\" -->\r\n<!-- <script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n        let headerCounter = 0; \/\/ Counter to generate unique IDs\r\n\r\n\t\t\/\/ Function to generate ID in header0, header1, etc. format\r\n\t\tfunction formatId() {\r\n\t\t\treturn `header-${headerCounter++}`; \/\/ ID format: header0, header1, etc.\r\n\t\t}\r\n\r\n\/\/ \t\tfunction formatId(text) {\r\n\/\/             return text.trim().replace(\/[^\\w\\d]+\/g, '_');\r\n\/\/         }\r\n\t\r\n        \/\/ Function to create nested list\r\n        function createNestedList(parentNode, children) {\r\n            if (children.length === 0) return;\r\n\r\n            const nestedUl = document.createElement('ul');\r\n            children.forEach(child => {\r\n                const nestedLi = document.createElement('li');\r\n                const nestedA = document.createElement('a');\r\n                nestedA.textContent = child.title;\r\n                nestedA.href = `#${child.id}`;\r\n                nestedLi.appendChild(nestedA);\r\n                nestedUl.appendChild(nestedLi);\r\n\r\n                if (child.children.length > 0) {\r\n                    createNestedList(nestedLi, child.children);\r\n                }\r\n            });\r\n\r\n            parentNode.appendChild(nestedUl);\r\n        }\r\n\r\n        \/\/ Object to store list of h2 and h3 with their titles\r\n        const headings = [];\r\n\r\n           \/\/ Get all h2 and h3 elements\r\n        \/\/ Get all h2 and h3 elements\r\n\t\tconst elements = document.querySelectorAll('.td-post-content h2');\r\n\r\n\t\telements.forEach(element => {\r\n\t\t\tif (element.tagName === 'H2') {\r\n\t\t\t\tconst id = formatId(); \/\/ Generate new ID\r\n\t\t\t\telement.id = id; \/\/ Set ID to h2 element\r\n\t\t\t\tif (element.textContent.toLowerCase() === \"key takeaways\") {return;} \/\/ Hide Key Takeaways di ToC\r\n\t\t\t\theadings.push({ level: 'h2', id: id, title: element.textContent, children: [] });\r\n\t\t\t} else if (element.tagName === 'H3') {\r\n\t\t\t\tconst id = formatId(); \/\/ Generate new ID\r\n\t\t\t\telement.id = id; \/\/ Set ID to h3 element\r\n\t\t\t\tif (headings.length > 0) {\r\n\t\t\t\t\theadings[headings.length - 1].children.push({ level: 'h3', id: id, title: element.textContent, children: [] });\r\n\t\t\t\t}\r\n\t\t\t}\r\n\t\t});\r\n       \/\/ Create HTML list from headings object\r\n\t\tconst ul = document.getElementById('list_toc');\r\n\t\tlet currentUl = ul;\r\n\t\theadings.forEach(heading => {\r\n\t\t\tconst li = document.createElement('li');\r\n\t\t\tconst a = document.createElement('a');\r\n\t\t\ta.textContent = heading.title;\r\n\t\t\ta.href = `#${heading.id}`; \/\/ Use the newly generated ID\r\n\t\t\tli.appendChild(a);\r\n\r\n\t\t\tif (heading.level === 'h2') {\r\n\t\t\t\tcurrentUl = li;\r\n\t\t\t\tul.appendChild(li);\r\n\t\t\t} else if (heading.level === 'h3') {\r\n\t\t\t\tif (!currentUl.lastElementChild || currentUl.lastElementChild.tagName !== 'UL') {\r\n\t\t\t\t\tconst nestedUl = document.createElement('ul');\r\n\t\t\t\t\tcurrentUl.appendChild(nestedUl);\r\n\t\t\t\t\tcurrentUl = nestedUl;\r\n\t\t\t\t}\r\n\t\t\t\tcurrentUl.appendChild(li);\r\n\t\t\t}\r\n\r\n\t\t\tcreateNestedList(li, heading.children);\r\n\t\t});\r\n\t\t\/\/ Get ul element with id 'list_toc'\r\n\t\tconst ulFloat = document.getElementById('list_toc');\r\n\r\n\t\t\/\/ Get content (child elements) from ul with id 'list_toc'\r\n\t\tconst clonedChildren = ulFloat.cloneNode(true).children;\r\n\r\n\t\t\/\/ Get ul element with id 'list_toc_float'\r\n\t\tconst ulToc = document.getElementById('list_toc_float');\r\n\r\n\t\t\/\/ Add content obtained from 'list_toc' to ul with id 'list_toc_float'\r\n\t\tulToc.append(...clonedChildren);\r\n\r\n\r\n        \/\/ Function to get navbar height\r\n\t\tfunction getNavbarHeight() {\r\n\t\t\tconst navbar = document.getElementById('tdi_34');\r\n\t\t\treturn navbar ? navbar.offsetHeight : 0;\r\n\t\t}\r\n\r\n\t\t\/\/ Function to add scroll position offset\r\n\t\tfunction scrollToElementWithOffset(elementId) {\r\n\t\t\tconst element = document.getElementById(elementId);\r\n\t\t\tif (element) {\r\n\t\t\t\tconst offset = getNavbarHeight();\r\n\t\t\t\tconst elementPosition = element.getBoundingClientRect().top;\r\n\t\t\t\tconst offsetPosition = elementPosition - offset - 40;\r\n\r\n\t\t\t\twindow.scrollBy({\r\n\t\t\t\t\ttop: offsetPosition,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Function to handle title link click\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst href = event.target.getAttribute('href').substr(1);\r\n\t\t\tscrollToElementWithOffset(href);\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all title links\r\n\t\tconst titleLinks = document.querySelectorAll('a[href^=\"#\"]');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n    <\/script> -->\r\n<\/p>\n<h2><b>What are Financial Statements?<\/b><\/h2>\n<p>Financial statements are documents prepared by businesses to summarize their financial performance and position. These reports are typically reviewed by government authorities and accountants to verify accuracy and support tax compliance, financing, and investment decisions.<\/p>\n<p>For-profit companies primarily rely on four key financial statements: the balance sheet, income statement, statement of cash flows, and statement of changes in equity.<\/p>\n<p>While nonprofit organizations also use financial statements, their versions have different names and convey slightly different details.<\/p>\n<h2><b>How Does a Financial Statement Work?<\/b><\/h2>\n<p>Financial statements can be prepared for various time periods. Annual financial statements summarize a company\u2019s financial performance for its most recent fiscal year, while interim financial statements may be generated on a monthly, quarterly, or semi-annual basis.<\/p>\n<p>Interim reports often contain fewer components than year-end statements. For instance, they might exclude the cash flow statement and the statement of retained earnings.<\/p>\n<p>Philippine companies, especially those regulated by the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR), are required to submit annual financial statements following the Philippine Financial Reporting Standards (PFRS).<\/p>\n<p>Publicly listed and larger companies also prepare quarterly financial statements, while some businesses may generate monthly or semi-annual reports for internal management purposes.<\/p>\n<h2><b>Why are Financial Statements Important?<\/b><\/h2>\n<p>Financial statements are essential for running and growing a business. They help with planning, budgeting, and tracking performance by comparing actual results with targets and forecasts.<\/p>\n<p>So what is the importance, other than those mentioned above? Here\u2019s how a business can use their financial statements for:<\/p>\n<ul>\n<li>If revenue increases but profit margins drop, the business may need to improve pricing or reduce costs. If expenses are higher than expected, cutting unnecessary spending might be necessary.<\/li>\n<li>Investors, lenders, and business partners rely on financial statements to understand a company\u2019s financial health. A thorough review ensures that every detail is considered.<\/li>\n<li>Financial statements are also used for tax filings. Since tax rules differ from accounting standards, some reports include future income taxes.<\/li>\n<\/ul>\n<h2><b>Elements of a Financial Statement<\/b><\/h2>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-19617\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement.webp\" alt=\"balance sheet vs income statement\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/balance-sheet-vs-income-statement-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a>Understanding the key components of a financial statement helps you get a clear picture of your company\u2019s financial health. Below are the <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/component-of-financial-statements\/\">financial statement components<\/a>.<\/p>\n<h3><b>1. Income Statement<\/b><\/h3>\n<p>An <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/income-statement\/\">income statement<\/a> outlines a business&#8217;s profitability by reporting its revenues, expenses, and net income over a given period. Also known as a <b>profit and loss statement<\/b>, it highlights the company&#8217;s financial performance.<\/p>\n<p>It includes:<\/p>\n<ul>\n<li><b>Revenue<\/b> from sales of products or services<\/li>\n<li><b>Expenses<\/b> incurred to operate the business<\/li>\n<li><b>Net income (profit)<\/b> after deducting all expenses<\/li>\n<li><b>Gains or losses<\/b> from non-core activities<\/li>\n<\/ul>\n<p><b>Example:<\/b><b><br \/>\n<\/b>XYZ Caf\u00e9 generated <b>\u20b1500,000<\/b> in revenue in January. It incurred expenses, including rent, salaries, and supplies, totaling <b>\u20b1350,000<\/b>. After subtracting expenses, its net income for the month was:<\/p>\n<ul>\n<li><b>Revenue:<\/b> \u20b1500,000<\/li>\n<li><b>Expenses:<\/b> \u20b1350,000<\/li>\n<li><b>Net Income:<\/b> \u20b1150,000<\/li>\n<\/ul>\n<h3><b>2. Statement of Retained Earnings<\/b><\/h3>\n<p>The statement of retained earnings shows the accumulated profits that a business has kept after distributing dividends to shareholders. It reflects changes in retained earnings from one period to the next.<\/p>\n<p>If a company starts with \u20b11,000,000 in retained earnings, earns \u20b1500,000 in profit, and distributes \u20b1200,000 in dividends, the retained earnings would be:<\/p>\n<ul>\n<li><b>Beginning Retained Earnings:<\/b> \u20b11,000,000<\/li>\n<li><b>Net Income:<\/b> \u20b1500,000<\/li>\n<li><b>Dividends Paid:<\/b> -\u20b1200,000<\/li>\n<li><b>Ending Retained Earnings:<\/b> \u20b11,300,000<\/li>\n<\/ul>\n<h3><b>3. Notes to the Financial Statements<\/b><\/h3>\n<p>The notes to the financial statements provide additional details on the accounting principles, assumptions, and estimates used in preparing the <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/financial-report\/\">financial reports<\/a>. These notes help stakeholders interpret and analyze the financial data more effectively.<\/p>\n<p>They typically include:<\/p>\n<ul>\n<li><b>Accounting policies and estimates<\/b> applied in the financial statements<\/li>\n<li><b>Supplementary details<\/b> for specific line items, such as:\n<ul>\n<li>A breakdown of accounts payable and receivable<\/li>\n<li>Revenue distribution across different business segments<\/li>\n<li>The amortization period for long-term assets<\/li>\n<\/ul>\n<\/li>\n<li><b>Other key information<\/b>, including:\n<ul>\n<li>Financial risks, such as foreign exchange fluctuations or credit concentration risks<\/li>\n<li>Violations of loan agreements, if any<\/li>\n<li>Contingent liabilities (potential obligations)<\/li>\n<li>Details about acquisitions or strategic investments<\/li>\n<li>Whether the financial statements were prepared using the <b>cash basis<\/b> or <b>accrual basis<\/b> accounting method<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>There are many components to get to know of and apply in the daily tasks, right? With the amount of information your company has, especially when it\u2019s thousands of transactions and values that must be documented, it must be tiring to do it all manually.<\/p>\n<p>So, why don\u2019t you try automating the tasks by using a digital solution. Just let the software work for you, and you can have an easier time analyzing and checking the works. Click on the pricing scheme banner below to see the price!<\/p>\n<a href=\"https:\/\/www.hashmicro.com\/ph\/offer\/download-erp-pricing-list?medium=banner-article\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-skema-harga.webp\" alt=\"SkemaHarga\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script>\n<h2><b>3 Types of Financial Statement<\/b><\/h2>\n<p>The three key financial statements are <b>(1) the income statement, (2) the balance sheet, and (3) the cash flow statement<\/b>. Each one provides essential financial insights for both internal and external stakeholders.<\/p>\n<h3><b>1. Income Statement<\/b><\/h3>\n<p>The income statement is often the first document investors and analysts review, as it tracks the company\u2019s performance over a specific period.<\/p>\n<p>It starts with sales revenue, deducts the cost of goods sold (COGS) to calculate gross profit, and further adjusts for operating expenses and other income to determine net income\u2014the company\u2019s \u201cbottom line.\u201d<\/p>\n<p><b>Key Features:<\/b><\/p>\n<ul>\n<li>Summarizes <b>revenues and expenses<\/b> over a set period (e.g., one year, one quarter).<\/li>\n<li>Uses <b>accounting principles<\/b> like accruals and matching, rather than a cash basis.<\/li>\n<li>Helps assess the <b>profitability<\/b> of a business.<\/li>\n<\/ul>\n<p>It\u2019s calculated by:<\/p>\n<p><b>Assets = Liabilities + Shareholders\u2019 Equity<\/b><\/p>\n<p><b>Example (in Philippine Pesos):<\/b><b><br \/>\n<\/b>A business, ABC Corporation, has <b>\u20b15,000,000<\/b> in assets, including cash, accounts receivable, and equipment. Its liabilities, such as loans and unpaid expenses, total <b>\u20b12,000,000<\/b>. The remaining amount, <b>\u20b13,000,000<\/b>, represents shareholders\u2019 equity. The balance sheet would reflect:<\/p>\n<ul>\n<li><b>Assets:<\/b> \u20b15,000,000<\/li>\n<li><b>Liabilities:<\/b> \u20b12,000,000<\/li>\n<li><b>Shareholders\u2019 Equity:<\/b> \u20b13,000,000<\/li>\n<\/ul>\n<h3><b>2. Balance Sheet<\/b><\/h3>\n<p>The balance sheet provides a snapshot of the company\u2019s financial position at a specific point in time by listing its assets, liabilities, and shareholders\u2019 equity. The total assets must equal liabilities plus equity, ensuring the balance sheet remains accurate.<\/p>\n<p>It begins with cash and equivalents, matching the ending balance from the cash flow statement. The balance sheet also reflects changes in retained earnings, incorporating net income from the income statement and adjustments for dividends.<\/p>\n<p><b>Key Features:<\/b><\/p>\n<ul>\n<li>Represents the <b>financial position<\/b> of a business.<\/li>\n<li>Displays data <b>at a specific date<\/b> (e.g., &#8220;as of December 31, 2017&#8221;).<\/li>\n<li>Divided into three sections: <b>assets, liabilities, and shareholders&#8217; equity<\/b>.<\/li>\n<li>Maintains the equation: <b>Assets = Liabilities + Shareholders\u2019 Equity<\/b>.<\/li>\n<\/ul>\n<h3><b>3. Cash Flow Statement<\/b><\/h3>\n<p>The cash flow statement starts with net income and adjusts for non-cash expenses. It then calculates cash inflows and outflows based on changes in the balance sheet.<\/p>\n<p>This statement highlights how cash moves through the business over a specific period, showing the net change in cash, along with the beginning and ending cash balances.<\/p>\n<p><b>Key Features:<\/b><\/p>\n<ul>\n<li>Tracks <b>cash inflows and outflows<\/b> over a set period (e.g., one year, one quarter).<\/li>\n<li>Adjusts for <b>accrual accounting<\/b> to reflect actual cash movements.<\/li>\n<li>Divided into three sections: <b>cash from operations, cash used in investing, and cash from financing<\/b>.<\/li>\n<li>Displays the <b>net change in cash balance<\/b> from the start to the end of the period.<\/li>\n<\/ul>\n<p><b>Example:<\/b><b><br \/>\n<\/b>DEF Manufacturing had the following cash transactions in Q1 2024:<\/p>\n<ul>\n<li><b>Operating Cash Inflows:<\/b> \u20b11,200,000<\/li>\n<li><b>Operating Cash Outflows:<\/b> \u20b1900,000<\/li>\n<li><b>Net Cash from Operations:<\/b> \u20b1300,000<\/li>\n<li><b>Investment in Equipment:<\/b> -\u20b1150,000<\/li>\n<li><b>Loan Received:<\/b> \u20b1200,000<\/li>\n<li><b>Cash Flow for the Period:<\/b> \u20b1350,000<\/li>\n<\/ul>\n<h2><b>Who Needs Financial Statements and Reports?<\/b><\/h2>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-19616\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements.webp\" alt=\"3 financial statements\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/3-financial-statements-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/a>The need to provide financial documents depends on who requires them and for what purpose. Financial statements and related reports may be necessary for:<\/p>\n<ul>\n<li><b>Lenders and financing partners<\/b><\/li>\n<li><b>Private and angel investors<\/b><\/li>\n<li><b>Bonding and insurance companies<\/b><\/li>\n<li><b>Regulatory agencies and tax authorities<\/b><\/li>\n<li><b>Credit rating agencies<\/b><\/li>\n<li><b>Suppliers<\/b><\/li>\n<li><b>Unions<\/b><\/li>\n<li><b>Investment analysts<\/b><\/li>\n<\/ul>\n<p>In some cases, businesses must submit both year-end financial statements and interim reports (monthly, quarterly, or semi-annual).<\/p>\n<p>These may include an interim balance sheet, income statement, aged receivables and payables report, and margin report to provide a clearer financial picture.<\/p>\n<h2><b>Limitations of Financial Statement<\/b><\/h2>\n<p>While financial statements provide valuable insights into a company\u2019s performance, they have certain limitations. Interpretations can vary, leading investors to different conclusions about a company\u2019s financial health.<\/p>\n<ul>\n<li>Some investors may prefer stock repurchases, while others might favor reinvesting in long-term assets.<\/li>\n<li>A company\u2019s debt level may seem acceptable to one investor but concerning to another.<\/li>\n<li>Comparing financial statements over multiple periods helps identify trends and assess the company\u2019s performance relative to industry peers.<\/li>\n<li>The reliability of financial statements depends on the accuracy of the data provided. Fraudulent activities or poor oversight can result in misleading reports, even if the statements are audited.<\/li>\n<\/ul>\n<p>Despite these limitations, financial statements remain a critical tool, though users must exercise caution and trust in their accuracy.<\/p>\n<h2><b>Simplify Financial Statements Management with HashMicro Accounting Software<\/b><\/h2>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-19623\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1.webp\" alt=\"HashMicro Accounting PH Dashboard\" width=\"1774\" height=\"1200\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1.webp 1774w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-300x203.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-1024x693.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-768x520.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-1536x1039.webp 1536w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-621x420.webp 621w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-150x101.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-696x471.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/HashMicro-Accounting-PH-Dashboard-1-1068x722.webp 1068w\" sizes=\"(max-width: 1774px) 100vw, 1774px\" \/><\/a>Keeping your financial records in order can be overwhelming. From tracking income and expenses to preparing financial statements, manual processes take too much time. And when numbers don\u2019t add up, it leads to delays and lost time to record everything.<\/p>\n<p>That\u2019s why businesses are turning to <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro\u2019s Accounting Software<\/a>. It automates financial reporting, eliminates errors, and gives you real-time insights into your business performance. It\u2019s equipped with these features that help you with financial statements:<\/p>\n<ul>\n<li><b>Multi-Level Analytics<\/b>: Break down your financial statements by branch, project, or division. You can switch views and compare financial performance across different segments.<\/li>\n<li><b>Financial Statement with Budget Comparison<\/b>: See your actual numbers side by side with your budgeted figures.<\/li>\n<li><b>Profit &amp; Loss vs. Budget &amp; Forecast<\/b>: Line up your profit and loss statement with your budget and forecasts to see how projections compare to reality.<\/li>\n<li><b>Cash Flow Reports &amp; Forecast Budget<\/b>: Monitor money coming in and going out with detailed cash flow reports. Plus, you can use predictive tools to forecast future cash needs.<\/li>\n<li><b>Financial Ratio (Automated Calculation)<\/b>: Instantly generate key financial ratios like liquidity, profitability, and debt levels without manual calculations.<\/li>\n<\/ul>\n<h2><b>Conclusion\u00a0<\/b><\/h2>\n<p>Financial statements are the backbone of any business, helping you track profits, expenses, and overall financial health. But let\u2019s be honest: managing them manually is a headache. One mistake, and you\u2019re stuck fixing errors instead of focusing on growth.<\/p>\n<p>That\u2019s where <a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\">HashMicro\u2019s Accounting Software<\/a> changes the game. Say goodbye to long hours spent crunching numbers and hello to instant, accurate financial reports. With real-time insights, automated calculations, and smart analytics, you\u2019ll always know where your business stands.<\/p>\n<p>Why waste time on tedious accounting tasks? HashMicro simplifies reconciliations, financial reporting, and compliance so accountants can close books faster and eliminate errors. Focus on strategic financial planning while the software handles the number-crunching for you!<\/p>\n<p>So, if you are interested, try the <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/\"><strong>free demo<\/strong><\/a> now and experience the benefits yourself!<\/p>\n\n<h2><strong>Frequently Asked Questions on Financial Statement<\/strong><\/h2>\n<ul class=\"bottom_faq\">\n<li>\n<details>\n<summary><strong>What are the limitations of financial statements?<\/strong><\/summary>\n<p>Financial statements may not capture intangible assets like brand recognition, can vary based on different accounting methods, and often rely on estimates and judgments.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>How do International Financial Reporting Standards (IFRS) influence financial statement presentation?<\/strong><\/summary>\n<p>IFRS provides guidelines for financial statements, including the balance sheet, income statement, statement of changes in equity, and cash flow statement, ensuring consistency and comparability across international boundaries.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>How does the cash flow statement differ from the income statement?<\/strong><\/summary>\n<p>While the income statement shows revenues and expenses over a period, the cash flow statement focuses on actual cash inflows and outflows, categorizing them into operating, investing, and financing activities.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What is the role of the statement of changes in equity?<\/strong><\/summary>\n<p>This statement details changes in a company&#8217;s equity during a specific period, including profits or losses, dividends paid, and any other changes affecting the equity accounts.<\/p>\n<\/details>\n<\/li>\n<\/ul>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What are the limitations of financial statements?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"Financial statements may not capture intangible assets like brand recognition, can vary based on different accounting methods, and often rely on estimates and judgments.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How do International Financial Reporting Standards (IFRS) influence financial statement presentation?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"IFRS provides guidelines for presenting the balance sheet, income statement, statement of changes in equity, and cash flow statement, ensuring consistency and comparability across international boundaries.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"How does the cash flow statement differ from the income statement?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"The income statement shows revenues and expenses over a period, while the cash flow statement focuses on actual cash inflows and outflows, categorized into operating, investing, and financing activities.\"\n      }\n    },\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the role of the statement of changes in equity?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"This statement shows changes in a company's equity during a specific period, including profits or losses, dividends paid, and other adjustments affecting equity accounts.\"\n      }\n    }\n  ]\n}\n<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever found it challenging to keep your financial statements accurate and organized? Manual reporting is prone to errors, and even small mistakes can lead to inefficiencies, poor decisions, and potential financial setbacks. That\u2019s why using a reliable accounting system like HashMicro Accounting Software is essential. With advanced features, it ensures greater accuracy in [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":19618,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[157],"tags":[],"class_list":{"0":"post-19614","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What are Financial Statements and Why They\u2019re Important?<\/title>\n<meta name=\"description\" content=\"Financial statements summarize a business\u2019s income, expenses, assets, and financial health. Improve reporting accuracy today. Try a free demo.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/financial-statement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are Financial Statements and Why They\u2019re Important?\" \/>\n<meta property=\"og:description\" content=\"Financial statements summarize a business\u2019s income, expenses, assets, and financial health. Improve reporting accuracy today. Try a free demo.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hashmicro.com\/ph\/blog\/financial-statement\/\" \/>\n<meta property=\"og:site_name\" content=\"HashMicro Philippine Blog\" \/>\n<meta property=\"article:published_time\" content=\"2025-03-07T08:55:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-01T07:30:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/financial-statements.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Nur Fi&#039;llia Nugrahani\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nur Fi&#039;llia Nugrahani\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"13 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.hashmicro.com\/ph\/blog\/financial-statement\/\",\"url\":\"https:\/\/www.hashmicro.com\/ph\/blog\/financial-statement\/\",\"name\":\"What are Financial Statements and Why They\u2019re Important?\",\"isPartOf\":{\"@id\":\"https:\/\/www.hashmicro.com\/ph\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.hashmicro.com\/ph\/blog\/financial-statement\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.hashmicro.com\/ph\/blog\/financial-statement\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/03\/financial-statements.webp\",\"datePublished\":\"2025-03-07T08:55:10+00:00\",\"dateModified\":\"2025-12-01T07:30:22+00:00\",\"author\":{\"@id\":\"https:\/\/www.hashmicro.com\/ph\/blog\/#\/schema\/person\/361edd80bf6a2b487c3c8bb5b4519fb2\"},\"description\":\"Financial statements summarize a business\u2019s income, expenses, assets, and financial health. 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