Key Financial Statements of an Organisation

This article discusses the importance of key financial statements such as balance sheets, cash flow statements, and profit and loss accounts in managing a successful organization. It explains how these statements help in identifying assets, liabilities, revenues, and expenses, and how they can be used to make strategic decisions for the future. The article also highlights the legislation and regulations that small businesses like DCS Group need to follow in the United Kingdom, including consumer law, employment law, and health and safety law.

Legislations and regulations for small businesses
When taking DCS into consideration the legislation and regulation in United
Kingdom are to be followed by the company so that they can effectively work in
the political environment.
Consumer law: The following law is formulated by government of United
Kingdom and also passed by Parliament of the country in which the protection of
customers and individuals to words the unfair practices which are being carried on
in business to words customer are looked after. It is necessary for DCS group to
make sure that they are providing protection to the consumers and not involving in
any unlawful activity which might cause consumers any problem. It is their utmost
duty to provide the consumers with quality products and services.
Employment law: Employment law of United Kingdom is also passed by its
Parliament. This is related to the interest of the employees who are working in
organisation. It is required by DCS group to make sure that they are paying their
employs well and also providing them a positive and hygienic environment. It is
required by them to make sure that they are providing training and development to
their employs and also various rights of employees in the organisation are
conserved by them
Health and safety law: Health and safety law refers to health and safety of the
employs who are working in the organisation. This is also drafted by the legislation
of United Kingdom government and passed by its Parliament. The employers have
a right to health benefits as well as security while they are working in the
organisation. It is the duty of DCS group to provide them with insurance, training
and development and also make sure that they are not performing any hazardous
work. There are also a number of benefits mentioned in this law for the employees
working in an organisation who have to face any injuries or suffer any losses while
working for any company.
Key financial statements of an organisation
There are a number of financial records which are to be managed by an
organisation for managing a success and dynamic environment. There are various
differences between assets, liabilities and other financial resources in an organisation
which helps the organisation in maintaining good position in the market. For DCS group
financial records required by the organisation I mentioned below:
Balance sheet: Balance sheet is prepared at the end of year it is an important financial
statement which helps in identifying all the assets as well as liabilities of the company.
It is often said that the assets and liabilities of the company at the end of year should be
equal. So the assets in liabilities in the balance sheet should also remain equal. It has a
number of stakeholders to understand the financial position of the company and also the
performance of the company in recent times. There are a number of different statements
through which balance sheet is generated which includes journal entries, ledger
accounts, profit and loss, cash flow statement.
Cash flow: The cash flow statement is a statement which is used by an organisation to
maintain the outflow as well as inflow of cash within the organisation. It is helpful for
an organisation as cash flow helps in maintaining and managing all the quick cash in
this organisation. It is required by the manager of DCS group to list down all the cash
flows in the cash flow statement and also make sure that the inflow of cash is greater
than that of outflow. Cash flow statement also helps in managing daily expenses and
current liabilities of an organisation.
Profit and loss: Profit and loss account is a statement which is used by any organisation
in order to identify all the expenses of the organisation along with all its revenues. Profit
and loss are usually based on a system or deducting the expenses of the company from
the revenue which is generated so that the actual profit of the company can be measured.
The profit shown in the profit and loss account is real profit which is owned by the
company. It is one of the important financial statement for a company which has the
organisation in making various strategy and tactics for its future.
Managing and running small business