Comparative accounting

Comparative accounting involves analyzing and presenting financial statements of multiple periods side by side. This approach helps stakeholders identify trends, growth patterns, and changes over time, making it easier to assess a company's financial health and performance. It enables meaningful comparisons by highlighting variations in revenues, expenses, assets, and liabilities, providing insights into the company’s progress or challenges. By comparing previous and current figures, management, investors, and analysts can make more informed decisions regarding operations, investments, and strategic planning.