Budgets are plans for the organisations money and resources , they need frequent monitoring to assess the organisations progress against agreed targets and to flag any potential issues .adjustments to reflect the cost that apply to specific projects, all areas of the organisation, they require frequent updating and reviewing as part of the organisational process of monitoring performance against targets.
financial statements present a full and accurate position of the organisations financial situation and that variations from the budget are able to be explained in full. The responsibility of ensuring these reports are accurate will generally be financial or committee senior management.The source of information that May be analysed when creating financial reports areBalance SheetsExpenseLiability reportsBudgetBudget forecastingAssets and cash
