How can we overcome the limitations of financial statements?

Financial statements atomic number 18 an important source of information to bigeminal groups of people. These people may belong inside the organization or they may be outsiders. The ingrained users of monetary statement accommodate managers, financial analysts, CFOs and accountants. Whereas external users may accommodate government agencies, such as tax revenue agencies and the securities and exchange commission, financial consultants, investors, creditors, etc. without delay there argon certain limitations that financial statements have, and this may cause problems in do intra and inter-company comparisons.In order to minimize or overcome the short-comings of financial statements investors, accountants, CFOs have on the whole developed different analytical tools and techniques. For internal users, especially managers, accomplishment measures have play a significant role in minimizing the effects of these limitations. Analysts now use tools that instigate in valuing compa nys performance beyond financial results, bringing factors analogous leadership, patents, specialized workforce, brands and human resources into the picture. Technology has distant a lot of barriers, especially with mention to finance, as companies today are in any case implementing financial data warehouses the use of which makes it a lot easier for organizations and individuals to make decisions that are crystalline and in most cases correct.Moreover, some companies are also voluntarily disclosing information somewhat their strategy, key success factors and their management objectives in supplements to their financial statements. This gives the investors, creditors, and other external users of financial statements more of an idea of what the firm is to the highest degree and where it may be standing in a couple of years from now. typeHelfert, Erich A. (2001). Financial Analysis Tools and Techniques A persist For Managers. McGraw-Hill.