Business Environment: Analysis of Documents and Financial Reports

This report provides an overview of business documents and financial reports, focusing on their importance in business operations and decision-making. It explores different types of documents, including emails, memorandums, business letters, and financial reports like income statements, balance sheets, and cash flow statements. The report compares various formats used in these documents and discusses their aims, styles, and deadlines. It highlights the role of technology in generating reports and emphasizes the significance of financial information for business analysis and strategic planning. The conclusion summarizes the key findings, emphasizing the importance of these documents for effective business management and future planning. The report includes formats and layouts of financial documents such as income statements, balance sheets and cash flow statements.

Producing document
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Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
Task1................................................................................................................................................1
(a) Comparison of various document to present the information................................................1
(b) Comparison of formats using in reports or documents..........................................................2
Task 2...............................................................................................................................................2
(a) Aims, styles, and ending date of number of documents.........................................................2
(c) Number of technology that arise reports or documents..........................................................3
Task3................................................................................................................................................3
(a) & (c) format for all reports.....................................................................................................3
(b) Layout of every report or document.......................................................................................5
CONCLUSION................................................................................................................................8
REFERENCE.................................................................................................................................10

INTRODUCTION
Human resource is the function in a organisation which deals with the human person and
their problems like as benefits, compensation, hiring and selecting the people in order to develop
the business. Human resource plays different role in any enterprise such as performance
management, training and organisation development and good behaviour of employees that helps
to solve the problems and maintain the profitability (Begg, Van der Woerd and Levy, eds.,
2018). The main aim of this report is to understand how to prepare the business document and
importance of these documents that helps to keep records of performance and increase the
productivity.
Task1
(a) Comparison of various document to present the information
Each organisation prepares different types of documents which is uses to sharing,
transacting business and examine the productivity of business organisation (Types of business
documents 2019). The information and reports are prepared by the staff and business concern
that provides various information in order to run a business by accepting the challenges. For
instance, Manager of Tesco prepares different types of reports such as-
Emails and Memorandum: Employees and manager uses emails and memorandum to
convey business information to each other. Memorandums are used in convey the message
specially and needs to keep more privacy than Email (Bocken and Short, 2016).
Business letters: This is important letter that is used to communicate the information
outside from the workplace. The business owners can include colleagues, stake holders and
customers for transferring the business information. The manager of Tesco uses a business letter
format in block style that helps to share the important information.
Financial documents for business management: Business concern uses different types
of financial reports that helps to prepare the budget and tax return file. It contains receipt records,
paid bills, income statement, bank statements, pay roll reports and balance sheet which is
constructed by the organisation's accountant. The employer of Tesco uses these documents to
define the business success of industry by using financial information( Burke and Clark, 2016).
From the above discussed documents financial information is most appropriate because it
provides financial information that help to take further business decision.
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(b) Comparison of formats using in reports or documents
The company prepares various financial documents that is used to share the financial
information. For example, Tesco is a multinational company that prepares different types of
document who provides financial information and gives ideas to run a business for long term.
Financial documents involves profit and loss account, final account (Balance sheet) and cash
flow statement (Doppelt, 2017).
Income statement: It states income and expenditure which is prepared by the company
to define the profit and loss. It is kind of final accounts and help to company to know profit of
the year in particular accounting period.
Final accounts: It contains fixed assets, current assets, current liabilities and owner
capital that helps to provide financial information. Every organisation can prepare their final
accounts in order to know position and performance of the company. In final accounts consist of
several types of reports like cash flow statement, profit and loss, balance sheet.
Cash flow statement: This contains operating activity, investment and financial activity
that shows how changes in final statement and income statement affects cash inflow and outflow.
The particular format can help to know liquid situation of an organisation regarding to specific
time period.
Task 2
(a) Aims, styles, and ending date of number of documents
Purposes: The aim of income statement and balance sheet is to describe the profit and
loss of an enterprise and define the assets and liabilities of organisation that needs to pay.
Moreover the intention of cash flow is to give information of payments & receipts. The main
purpose to prepare all statements that provide accurate and actual information regarding to
performance of profitability of the company.
Content: Income statement consist cash received from selling of products and services
and expenses, balance sheet consist assets and liabilities and cash flow consist inflow and
outflow from operating, investing and financial activity (Efferin and Hartono, 2015). These
content are related to companies and reliable in reference to specific time period.
Style: Income statement are prepares in two style such as single step and multi step,
balance sheet are prepared in vertical and horizontal and cash flow is also prepared with direct
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and indirect method. All these documents provides financial information. The company has
following different style as per requirement of different statements.
Deadline: The Profit & loss account and final accounts are prepared ending of the year
where as cash flow statement are required to present monthly, quarterly and yearly.
(b) Research required content
It means an organisation need to prepares different types of reports that provides
financial, business and human needs information in order to run a business. For instance, Tesco's
manager prepares different documents with the helps of financial information. For preparing
such document there is required financial information who helps to take effective business
decision (Hogan, Sellar and Lingard, 2015).
(c) Number of technology that arise reports or documents
The manager and business concern used HR technology while preparing the performance
report, hiring report and also used software to provide the payroll to employees. A part from this,
manager also used latest technology to prepare the final statement end of the year that helps to
provide financial information to the industry. For instance, Tesco is planning to expand the
business, for this it issues memorandum that will give information about expanding business. For
this it uses latest technology that helps to increase the productivity and convey the messages
among members and employees.
Task3
(a) & (c) format for all reports
Format of Income statement:\
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Balance sheet format:
Current assets
Cash XXX
Receivable XXX
Unexpired insurance policy XXX
Prepaid building rent XXX
Total current assets XXX
Non current assets
Equipment XXX
Depreciation accumulation XXX
Assets total XXX
Liabilities
Payable XXX
Salary payable XXX
Income tax payable XXX
Unearned service incomes XXX
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Total liabilities XXX
Shareholders Equity
Capital XXX
Retained earnings XXX
Total stockholder's Equity XXX
Total liabilities and stockholder's equity XXX
Format of Cash flow statement:
Cash flow from operating activity
Operating revenue (EBIT) XXX
Depreciation expenses XXX
Loss on sold of equipment XXX
Profit on sold of fixed assets (-)
Gain in Account receivable (-)
Decrement in prepaid expenses XXX
Decrement in Accrued expenses (-)
Net cash flow from operating activities
Cash flow from Investment activity
Sold of fixed assets XXX
Purchase of equipment (-)
Net cash flow from investment activity
Cash flow from financial activity
Payment of dividend (-)
Payment of bond payable (-)
Net cash flow from financial activity
Net change in cash XXX
Starting cash balance XXX
Ending cash balance XXX
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(b) Layout of every report or document
Design of income statement-
Net income is calculated by deducting all expenses from all incomes. This is the primary
document of company that is used to measure the ability to make profits. It is prepared end of the
year by including all income and expenses. Moreover it is useful to calculate the net income of
any organisation (Format of income statement 2019).
Layout of final account-
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It is used to measure the assets and liabilities of company after paying the liabilities. It
involves assets, liabilities and shareholder's equity that helps to take further business decision in
order to run a business (Miyata and et.al., 2015).
Layout of cash flow statement
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It states the reasons for alteration in cash amount, shows sources and usage of cash in
operational, investing and financing activity. It shows inflow and outflow of cash which is used
to measure the cash equivalent in order to run a business (Stacey, 2016).
CONCLUSION
From the above report it has been concluded that every business person prepares different
types of documents that helps to provide information relates to human resource and financial
information. Business concern prepares business document that provides business information,
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financial documents which provides financial information, and memorandum that is used to
communicate and provide information to external. With the help of these documents an
organisation can decide what needs to do to in future for running business effectively. Moreover,
report covered format and layouts of financial documents that contains income statements,
balance sheet and cash flow statement in order to define profits or loss.
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REFERENCE
Books and Journal
Begg, K., Van der Woerd, F. and Levy, D. eds., 2018. The business of climate change:
Corporate responses to Kyoto. Routledge.
Bocken, N. M. and Short, S. W., 2016. Towards a sufficiency-driven business model:
Experiences and opportunities. Environmental Innovation and Societal Transitions. 18.
pp.41-61.
Burke, J. J. and Clark, C. E., 2016. The business case for integrated reporting: Insights from
leading practitioners, regulators, and academics. Business Horizons. 59(3). pp.273-283.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Efferin, S. and Hartono, M. S., 2015. Management control and leadership styles in family
business: An Indonesian case study. Journal of Accounting & Organizational Change.
11(1). pp.130-159.
Hogan, A., Sellar, S. and Lingard, B., 2015. Network restructuring of global edu-business. W.
Au, & JJ Ferrare, Mapping corporate education reform. Power and policy networks in
the neoliberal state, pp.43-64.
Miyata, R., and et.al., 2015. ‘Garbage Let’s Take Away’: Producing Understandable and
Translatable Government Documents: A Case Study from Japan. In Social Media for
Government Services (pp. 367-393). Springer, Cham.
Stacey, R. D., 2016. The chaos frontier: creative strategic control for business. Butterworth-
Heinemann.
Online
Types of business documents. 2019. [Online] Available through:
<https://smallbusiness.chron.com/5-types-business-documents-22842.html>
Format of income statement. 2019. [Online] Available through:
<http://www.arborinvestmentplanner.com/income-statement-format-components-and-purpose/>
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