Companies need to keep a financial record of their transactions each year. This would include documents like Profit & Loss statements, balance sheets, depreciation schedules and cash records. For companies listed on the stock exchange, profit information need to be produced six-monthly. These are then known as their half-year profits.
For example…
Lets say Easy Car Services have just launched a new software product for cars that automatically checks parts of your car and reports the need for servicing in between scheduled services. As some examples, the company would need to records of purchases, invoices, depreciation records and taxation statements. Accountants would then use these to produce items like Profit & Loss statements and balance sheets.
