Financial reporting processes are designed to provide accurate, detailed and timely financial information that meets the requirements of stakeholders. They involve the collection of data from a variety of sources, including internal accounting systems, external auditors and other third parties. Once the data is collected, it undergoes a rigorous process of validation and analysis in order to ensure accuracy. The output of this process is usually a financial report or statement that outlines the financial position of an organization. Financial reports help stakeholders understand the health of an organization and make decisions regarding investments, operations and future expansion.