 One of the strengths of traditional budgeting is the integration with financial reporting.While this close relationship is also mentioned as disadvantage above, all organizations remain to be confronted with financial reporting (see also Financial statement).One advantage arising from this close relationship is that financial reporting as well as traditional budgeting have established procedures how operational figures regarding sales and costs (at all levels, departmental up to group-wide) are reflected in the Income Statement, and then combined with capital expenditure and financing roll into the Statement of Financial Position, Statement of changes in equity and cash flow statement.