How can we overcome the limitations of financial statements?

fiscal statements are an important source of information to multiple groups of people. These people whitethorn belong within the organization or they may be outsiders. The intrinsic exercisers of financial statement acknowledge managers, financial analysts, CFOs and accountants. Whereas external users may include government agencies, such as tax agencies and the securities and exchange commission, financial consultants, investors, creditors, and so forthNow there are certain limitations that financial statements have, and this may cook problems in making intra and inter- connection comparisons.In order to minimize or conquer the short-comings of financial statements investors, accountants, CFOs have all developed different analytical tools and techniques. For intimate users, especially managers, performance measures have played a significant constituent in minimizing the effects of these limitations. Analysts now use tools that aid in valuing companys performance beyond finan cial results, bringing factors like leadership, patents, specialized workforce, brands and human resources into the picture. Technology has removed a lot of barriers, especially with gaze to finance, as companies today are also implementing financial data warehouses the use of which makes it a lot easier for organizations and individuals to make decisions that are logical and in or so cases correct.Moreover, some companies are also voluntarily disclosing information about their strategy, expose 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 about and where it may be stand in a couple of years from now.REFERENCEHelfert, Erich A. (2001). Financial synopsis Tools and Techniques A Guide For Managers. McGraw-Hill.