Introduction to Financial Accounting

Doubt, of whatever kind, can be ended by action alone - Thomas Carlyle

​Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.

Companies issue financial statements on a routine schedule.
The statements are considered external because they are given to people outside of the company, with the primary recipients being owners/stockholders, as well as certain lenders. If a corporation's stock is publicly traded, however, its financial statements (and other financial reporting) tend to be widely circulated, and information will likely reach secondary recipients such as competitors, customers, employees, labor organizations, and investment analysts.

​An important tool to providing additional assurance your companies financial statements are prepared according the company objectives is by establishing detailed policies and procedures.  This tool will not only support the day to day responsibilities of the staff it will also be a reference guide for internal audit, company re-organizations and direct management.

Source:  AccountingCoach