Financial information refers to the study and analysis of financial transactions and their implications. It is primarily concerned with the allocation and use of funds within an organization, as well as the distribution of resources among its various activities. Financial information is a general term referring to matters concerning the study, generation, analysis and interpretation of financial information, and related matters such as financial statement preparation and management. Specifically, it concerns the following issues:
The process of collecting financial information has many stages. The initial step involves determining which financial transactions are relevant to a particular business concern or organization, as well as those transactions that are not relevant. The next step involves the collection of financial data from internal sources. After this has been done, it is necessary to conduct research to identify any relevant information that can be obtained from external sources. This requires the compilation of information from external sources, as well as internal research. Finally, a detailed financial report is prepared based on the collected data, which is then presented to various stakeholders for review and comment.
In order to obtain information regarding financial transactions, it is necessary to have access to sources which provide this information. For example, a lender may require information on a borrower’s assets, income, property ownership, liability, net worth and other relevant information. A bank, on the other hand, may need to know the owner of a particular bank account, the name of the person holding that account and his address, as well as the type of account being held. A credit card issuer may want to know the amount of credit extended to a customer, as well as the name and address of the cardholder. Financial institutions and other organizations engaged in financial transactions may also need information on the borrowers who hold their money. All these entities may be required to pay for this information, and the fees for such information may also need to be paid.