Importance of financial transparency in business management.

[Axis]

As long as a business exist they must always be the inflow and the outflow of cash which of course the official or the personnel handling cash authorization and disposal must have a transparency attitude or behavior. Each personnel or official working in a business organization should remain accountable for the role and responsibilities he or she performs and that include the accountant or possibly the auditor or the financial manager. Officials occupying the post of accountant as well as that of an auditor must always remain transparents since their roles involves analyzing business finance.

It is absolutely important that transparency exist in the financial sector of a business because when this occur it helps such business to have a great deal of reputation. And of course other businesses would want to strike a deal with a business that have good financial transparency.

 

[Mikes smithen]

Financial transparency plays a very important role when it comes to business management and administration. In business there is always an inflow and outflow of cash and from time to time this cash are usually accounted for which of course requires transparency so that trust and loyalty can settle it. It is true that the official or the personnel are signed with the handling of cash must so much be sincere and transparent possibly by vividly and clearly listing down names of money collected and money paid out by the business organization so that proper accounting as well as auditing and decision can be made based on results found.

 

[Suba]

Financial transparency is not only about the inflow and outflow of cash but discusses the overall/comprehensive financial condition and position which contains the balance sheet, income statement, cash flow statement and changes in capital statement or retained statement, which are presented accurately, clearly, relevantly, reliability and punctuality. So financial transparency must also be disclosed openly, both to internal and external parties. Meanwhile, for the benefit of external parties, the financial statement must have been audited by a public accountant, so that it will be disclosed and there will be footnotes such as changes to accounting principles, for example changing depreciation methods or inventory.

 

[Etini]

Financial transparency ensures that the business is healthy financially so that it doesn't go bankrupt. Financial transparency also ensures that a business maintains a good reputation because it would not have fraud related lawsuits to deal with. It is important for a business to employ credible staff to manage their accounts department to ensure that there is financial transparency from the business or company. The deployment of independent external auditors can also help a business to ensure that it is on the path of financial transparency.