financial systems

What are the Key Components of Financial Systems?

The main components include:
- Accounting Systems: These track all financial transactions and provide reports like income statements, balance sheets, and cash flow statements.
- Budgeting: Planning future income and expenses to ensure the business can meet its financial obligations.
- Financial Reporting: Generating reports that summarize the financial status of the business for stakeholders.
- Internal Controls: Procedures and mechanisms that protect assets, ensure accurate reporting, and comply with laws and regulations.

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