Financial loss can be understood as the meaning that an accounting subject should be confirmed but not confirmed because of some irregular business of the enterprise.

The reasons for financial losses include:

1. Non-subjective intentional acts, such as the advance payment of accounts by the enterprise according to the contract, or the failure to confirm all the sales revenue in time after the delivery of goods, lead to the financial loss of the enterprise and the underpayment of taxes in the current period.

2. Subjective intentional behavior, such as deliberately not reporting or underreporting the current sales revenue due to illegal tax avoidance, or delaying the time of revenue recognition, leads to the phenomenon that the income of the enterprise is not registered, and also leads to the financial loss of the enterprise.