How & why managers use financial statements.
By Cote, C.
Cote, C. (2020, June 16). How & why managers use financial statements. Business Insights Blog. https://online.hbs.edu/blog/post/how-managers-use-financial-statements
Writing for the Harvard Business School Online blog, Cote discusses the practical utility of financial statements for internal management rather than just external reporting. The article explores how the balance sheet, income statement, and cash flow statement serve as vital indicators of organizational health and operational efficiency. Cote highlights how managers use these documents to track performance against budgets, identify trends, and justify capital investments. The narrative shifts beyond mere numbers to explain how financial literacy empowers managers to communicate effectively with stakeholders and align their departmental goals with the company’s broader financial strategy. The piece underscores the role of financial data in risk assessment and long-term sustainability. It serves as an essential bridge between technical accounting and practical management leadership.