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Monthly financial reports are a management way of obtaining a concise overview of the previous month's financial status to have up-to-date reporting of the cash management, profit and loss statements while evaluating future plans and decisions moving forward. Knowing the financial status not only enables a business or an individual to plan for the future but also avoid going into bankruptcy by showing assets, liabilities and taxes due/payments. They then analyze the ratio between liabilities and equity in order to determine if a company can handle its current and/or future debt obligations.
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