Therefore, every company is obliged to prepare financial statements, even if required subject to audit by independent auditors. This is to see whether the company is healthy or not. Companies or other parties may also consider working with a company by looking at the first financial statements of the company.

Financial report made by the company must be made correctly and honestly, this is because the financial statements are dishonest can legally be sued by other parties with an interest in the company.

If the company does not have the resources to prepare financial statements, the company can hire others to make their financial statements. Already many service companies engaged in the manufacture of the company’s financial statements. Select a service company that is certified and has been proven that the data in your company’s financial reports accurately.

Company’s financial statements can also be used as a tool to improve corporate performance for much better by the owners of the company.

Human resource management

There are major activities in financial namely: Finding and Using funds on corporate assets. The main activity is called the financial function. Sources of external funding are sum be drama which is not of the company’s operations. Source of funds in the form of debt, preferred stock, common stock, discounted from the purchase, savings or tax exemptions, subsidies, and others. The accounting firm resources can be grouped into the source of debt and equity.

In the financial statements, sources of corporate funds will be reported on corporate balance sheets on the right side, that side of Liability. The proceeds are then invested in various assets of the company. From the activities of the fund invested, the company expects to obtain greater results from his sacrifice, in other words the expected profit. Allocation of funds can be classified into two: the funds used to finance working capital and funds used for investment in capital goods.

Financial companies principally to answer three main issues of financial companies, i.e.: what the long-term investments attractive to companies? How companies can increase their wealth through investment activities? How banyan short-term cash flows those needs to be provided by the company to meet its obligations? The position of financial management within the company to carry out its operations, the company requires a function as an activator of business.

Funs Company can be classified into four namely: The function of marketing, production functions, financial functions, functions manage human resources, marketing functions related to the activities to generate sales. The production function is needed to provide products that will be sold through the production process.

Financial functions described as the driving energy all company activities through funding and financing required by the company. The main activity is called the financial function. Funs financial management is under the responsibility of financial manager.

Financial managers need to obtain funds from financial markets show financial. Market between demand and supply company will source the funds can be grouped according to the process is a source of internal funds and external funding sources. Sources of internal funds are a source of funds derived from the results of operations Activity Company directly. The source of this funding comes from deprasiasi and retained earnings.

Capital structure

To see this linkage then it will include an external environmental variable (dynamic environment) into the variables that influence the selection of capital structure which is intended to determine the level of dynamic environment at different companies and analyze the influence of strategic managerial decisions on capital structure by considering the environmental factors on the company’s performance.

The method is using multiple regression analysis by including the moderating variables in the regression equation. The findings from the performed analysis is that the leverage variables have the most dominant influence on the company’s performance compared to dynamic variables, leverage variables in a dynamic environment and company size variable.

The direction of leverage relationship is toward negative relationship about the company’s performance. These findings indicate that company’s performance is much influenced by internal decisions against the selection of capital structure.

Here also discovered a fact that at all levels of environmental dynamism, leverage is negatively related to the company’s performance. This concept does not support previous idea which is found a different capital structure selection at every level of environmental dynamism. The results of this study indicate that external factors (environmental dynamism) have not become a consideration yet for the management in determining the choice of capital structure.