The ability of an individual to keep track of the financial transactions of a business,

resulting from its operation over a period of time, is known as his financial
accounting skills. This is done by recording, summarizing and presenting all such
financial data in the form of financial reports or statements, using standardized
guidelines.

Such financial statements usually include balance sheet, income statement, and
cash flow statement, which summarize the performance of a company’s operations
over a period of time. Financial accounting skills usually do not encompass the
ability to report the value of a company but to be able to provide sufficient
information for others to assess it themselves

Why is financial accounting

important
Financial accounting is integral to companies of all sizes because it helps in the
following:

 Communication of information externally. The statements and reports

generated by financial accounting are used to communicate information about the
overall health and well-being of the company to the external parties. Such external
users may include suppliers, banks and leasing companies etc. who are not part of
the company but require all this information to analyze the progress of the company
and compare it with their expectations.

 Communicate information internally. A company’s finance team or its employees

who are interested in stock-based compensation etc. constitute the internal users of
the information generated by financial accounting practices. The reports generated
with the help of financial accounting skills are helpful for this purpose as well.

 Comparison through analysis. Since financial accounting requires the use of

standardized guidelines, the financial statements generated by all companies are
comparable, providing a standard method of analysis.

How to improve financial

accounting skills
Following are some of the ways in which you can improve your financial reporting
skills in order to be able to prepare and present the company’s financials in a better
way:

 Review the statements of peer organizations. One of the best ways to look for
any gaps you can fill is to review the financial statements of other organizations in
 your industry. Observing the industry best practices is the best way to improve your
own.

 Focus on the format. Considering it a minor detail, many people tend to be

indifferent towards the format of their company’s financial statement. This,
however, is wrong because the format has a great impact on the convenience and
ease with which these statements are used and consumed. For instance, if most of
the organizations are inclined towards using single column balance sheets then it’s
preferable that you adopt the same approach for your balance sheet’s format as
well.

Examine the footnotes. You may be required to rework the footnotes on your
financial statements in order to ensure their transparency as well as readability.
Ensure the use of correct terminology as well as sequence in the footnotes. Make
sure that all necessary details are provided in the most appropriate manner

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Contabilidad financiera

Es la capacidad para realizamos un seguimiento de las transacciones financieras de un negocio,

durante un tiempo determinado, realizado por medio de registro y resumen de los estados
financieros; balance general, estado de resultado y flujo de caja.

IMPORTANCIA DE LA CONTABILIDAD FINANCIERA

Comunicación de la información externa: los informes financieros se utilizan para comunicar
información sobre el estado general de la empresa.

Comunicación de la información interna: constituyen los usuarios internos de la información

generada por las prácticas de contabilidad financiera.

Comparar atreves de análisis: los estados financieros generados por todas las compañías son
comparables, lo que proporciona un método estándar de análisis

COMO MEJORAR LAS HABILIDADES DE LA CONTABILIDAD

Las siguientes son algunas de las formas en que puede mejorar sus habilidades de información
financiera para poder preparar y presentar las finanzas de la compañía de una mejor manera:

Revise las declaraciones de las organizaciones de pares: Una de las mejores

maneras de buscar cualquier brecha que pueda llenar es revisar los estados financieros de
otras organizaciones en su industria.