There are many types of Business organizations, e.g. Trading, Manufacturing, Professionals, Non Profit making Organizations etc.
Whatever be the form of organization, or whatever be the type of Business Orgaisation, these organizations have set up their own internal control procedure. Therefore these organizations are divided into various departments like HR, Shop Floor, Stores, Transport, Sales Department etc. During the year, many transactions take place between these departments. Similarly these departments generate various Management Information reports. These reports can be classified as Internal Reporting. These Internal reports form integral part of the over all financial Reports of the Organisation.
Financial reports are accessible to the public at large and therefore expected to provide more information through it. Financial Reports are mostly audited by independent Chartered Accountants. Balance Sheet, Profit and Loss account etc are the popularly known Financial Reports.
Many statutes have prescribed the formats of Financial Reporting, For example Companies Act 2013 has prescribed the format of Balance Sheet and Profit & Loss Account of a Company. Similarly Public Trust Act has prescribed the format of Balance Sheet and Income and Expenditure Account of a Charitable Trust. We have provided certain formats in MS Excel on our website for ready reference of the users.