Is it important for employees to know the company's financial statements?

[astutimeliana723]

If you were a boss, would you let your employees know your company's financial statements? So they will know how much profit or loss each accounting period is, or how much the company's wealth is?

Or keep financial reports secret from employees, and they only receive a salary every month. Most bosses in my country don't let their employees know about the company's financial statements.

What do you think about this?

 

[cherry123]

I don't think it is a mandatory thing but it's still good to know so as to ascertain if the business is still doing well and be able to pay your salary

 

[Starmix]

Ib my workplace the financial statement is discussed only during the board meeting and the employees need not know, Their duty is to serve the company with utmost dedication because they're paid.

 

[astutimeliana723]

There are companies that offer their employees to participate in buying shares to invest, isn't it necessary for employees to see financial reports before deciding to invest?

Post automatically merged: May 23, 2023

Ib my workplace the financial statement is discussed only during the board meeting and the employees need not know, Their duty is to serve the company with utmost dedication because they're paid.

Yes, most of the companies I work with are like you said.

 

[Springtime]

It the company is a publicly listed company, it is mandatory to disclose financial statements to the public so that they can decide whether they would like to buy the shares of the company. For most private companies, financial statements are disclosed to Board members or top management only.

 

[Etini Willie]

Some bosses don't ever want their employees to know the true financial position of the business so that they would not agitate for a raise.

 

[eldavis]

I might be wrong though, but personally i do not think it is right for all the employees to know the financial statement, for security reasons the financial statement should not be disclosed to everyone.

 

[SHAHID987]

In my view employee must know the company's financial situation as this important factor bearing all hidden information about if the employee will get salary on time or not if they get bonus or not and their jobs are secure or not.

 

[Sophie]

No, I don't think it's important for employees to know the financial statements of a business
Although they are among the internal users of financial information I feel like them knowing it affects their working performance

 

[Smalto]

If you were a boss, would you let your employees know your company's financial statements? So they will know how much profit or loss each accounting period is, or how much the company's wealth is?

Or keep financial reports secret from employees, and they only receive a salary every month. Most bosses in my country don't let their employees know about the company's financial statements.

What do you think about this?

For me, I don't think it's really wrong for an employee to know the financial statements if the company or organisation where he or she is working at, it helps to motivate and also keep them in check while discharging their various duties, so it's a very welcome idea.

 

[Passiveearner]

I think that employees or even small shareholders themselves are not aware of company's real secrets or financial position. However, certain kinds of executives in the company may be aware of many things going on in the company.

 

[Etini Willie]

I feel it is just a matter of transparency for an organization to let it's staff know it's true financial position. It is easy if you know you are being fair to your staff in terms of pay as an organization. You don't even need to hide it from them.

 

[IB D]

I think that employees or even small shareholders themselves are not aware of company's real secrets or financial position. However, certain kinds of executives in the company may be aware of many things going on in the company.

If you are talking about a small business, your argument could he valid though but for a registered established company, their financial statements are in the public domain as required by the law of the country. The shareholders can even hire an external auditor to probe published financial statements.

 

[Etini Willie]

Some organizations don't let their staff in on the financial position of the business because they fear that it might lead to agitations for a pay rise. That would only happen if a company is cheating it's staff.

 

[eldavis]

Some bosses don't ever want their employees to know the true financial position of the business so that they would not agitate for a raise.

That is true, especially in a situation where the company might not be doing too well when it comes to their finance. The rest of the staffs knowing this might lead to panic and fear, which could affect the production process as well.

 

[Starmix]

There are companies that offer their employees to participate in buying shares to invest, isn't it necessary for employees to see financial reports before deciding to invest?

Post automatically merged: May 23, 2023

Yes, most of the companies I work with are like you said.

But in the insurance companies where I worked part time, the employees including the agents were informed about the financial status of the company. This way triggers the agents in the field to reach their quota.

 

[sofiko]

Yes, it is important for employees to have an understanding of the company's financial statements. It helps to understand the financial condition of the organization, its profitability, profitability and stability. Understanding financial indicators allows employees to assess the impact of their actions on the company's financial results. They may be more knowledgeable about budgeting, resource allocation, and investment decisions. Knowledge of financial statements also helps to feel more confident and interact with employees and company management on a business level.

 

[Niyi Briggs]

That is true, especially in a situation where the company might not be doing too well when it comes to their finance. The rest of the staffs knowing this might lead to panic and fear, which could affect the production process as well.

You have a point there. It can make the staff to panic that the company would not be able to pay salary. In the other way round, staff knowing it can boost them to work more to better the company's finances.

 

[Blessed19]

No matter how hard the company tries to hide the financial statement of the company from the staffs, it would still be known by the staffs as it is still an employee that is managing that aspect.

 

[eldavis]

For security reasons it is not safe for all staff to know this. In a situation where the staff goes ahead to join your competition, that knowledge can be used against you.