Special Purpose Report: A special-purpose financial report is intended for presentation to a limited group of users or for a specific purpose. For example, special-purpose financial statements are prepared for tax reporting, bank reporting, and industry-specific reporting.
Most SME’s (Small to Medium Enterprises) and not for-profit entities will produce a simple profit and loss and balance sheet, in any format tha the business requires or desires them to be in by following specific guidelines or reporting requirements established by the directors, owners or members.
General Purpose Report: General purpose financial reports provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. General-purpose financial statements are issued throughout the year and includes a balance sheet, income statement, statement of owner’s equity/retained earnings, and statement of cash flows.
