Understanding Financial Management in Facilities Management - Assignment Example

The paper "Understanding Financial Management in Facilities Management" is a wonderful example of an assignment on management. Understanding financial reporting is termed as vital and a compulsory for every company and organization to be able to remain profitable and operational for a long time while growing the venture much bigger. The financial reporting is a process of making statements that are aimed at disclosing to the public, investors, and donors the financial stability and its status. The information is very vital for the management, investors, and government as a whole to help ensure that the industry is operating within the law and adheres to the taxation requirements among other factors dependent on the financial position of the organization (Lambert and Cooper, 2000).

In many states including the United States, there are four recognized basic reports: the profit and loss statements (also classified under the income statements category), the statement of the equity of shareholders, the balance sheets, and the cash flow report. The Securities Exchange Commission (SEC) stipulates that every public company must tag its financial statements via the provided eXtensible Business Reporting Language (XBRL). The United States is working towards merging the GAAP and IFRS, General Accepted Accounting Standard, and International Financial Reporting Standards respectively, which will work together to ensure that the participants in moderating the new financial report standards that will govern all the public companies effectively (Thompson, 1993).

The experts have been against the recording of the financial statements through the Excel, advocating for the automaton of the process that needs the use of the enterprise resource planning (ERP) programs or an identified company-specific reporting system. The experts are using special software such as the XBL tag engine that seems to be very simple to use and minimizes the amount of labor input hence making it more effective to the companies to record their dealings within a shorter time possible. The financial reports vary with the time of their recording: end-year closing, quarter-end closing, and end month closing.