Financial reporting within the business of heterogeneous companies as a basis for making valid business decisions

Financial reporting is a part of the business of the accounting and financial sector in companies, where the presentation of business changes during a certain period of time is carried out in a professional manner with the application of reporting standards. Planning activities that take place within the work of numerous legal entities in connection with the realistic presentation of financial reporting represents a significant phase of realistic reporting. Financial reporting represents the basis of the presentation of operations in the previous period, and there is a difference between reporting within the company and also external reporting to banks, state authorities, shareholders, management bodies, and others. Financial reporting meets the reporting needs of management bodies in companies, i.e. most often it is about reporting to the top management of companies. Essentially correct and realistic financial reporting is the basis for making valid management decisions in the work of numerous companies, that is, in the work of the public sector and state authorities in a country. In addition, realistic financial reporting allows for an increase in the efficiency of managing both the available funds and the available funds with which the top management can manage in one company. In this way, observed financial reporting becomes an active participant in achieving business success of numerous companies in one economy.