2), for financial statements to be useful to the reader, they must be relevant. One of the elements of relevancy is the timeliness of having the information. Specifically, your organization should have timely financial reporting information available while you are able to influence decisions.

Why is timely financial reporting important?

It is important to report financial information in a timely fashion. The longer a company waits to release its annual report and accompanying financial statements, the more stale the information is and the less useful it is.

Does the information in the financial statement relevant?

Relevance is the concept that the information generated by an accounting system should impact the decision-making of someone perusing the information. ... This improves the speed with which various internal and external parties receive the financial statements, which improves the relevance of the information they receive.