Create a financial reporting process using EdrawMax or EdrawMax Online's predefined templates. A finance manager can then export the report in multiple formats as per the need. To fully understand the financial reporting process, the bookkeepers need to understand the basic accounting principles. The fundamental concepts are shown in the below financial reporting process diagram enable a company to construct an income statement, balance sheet, and cash flow statement, which are the essential steps in the financial reporting cycle. The reporting process cycle starts by mentioning daily procedures like preparing source documents, journal entries, and others, understanding period-end procedures like updating journal vouchers and general ledgers.