A financial report is a company document that showcases all the financial activities and performances of a business over a set period. These are legally obligatory documents for businesses and provide a clear picture of company finances to investors, creditors, suppliers and employees. They are often created on a quarterly or yearly basis.
The main sections of a financial report are the income statement, balance sheet and cash flow statement. These highlight critical metrics like sales revenue, expenses and profit. They also help you track company growth and profitability estimates.
To write a great financial report, make sure the data is accurate and organized. This includes comparing metrics across different periods, using charts and tables to simplify complex information and eliminating any discrepancies. It’s also essential to tailor the content to meet the needs of your audience. For example, if you need to address cash flow issues, suggest strategies like negotiating payment terms with vendors or adjusting inventory levels.
Other important sections of a financial report include the management’s discussion and analysis (MD&A) and the statement of changes in equity. The MD&A gives management’s perspective on the company’s performance, including key trends and risks. It also includes an overview of the company’s liquidity and capital resources. The statement of changes in equity tracks shifts in shareholder’s value by listing details on share issuances, buybacks and option exercises or RSU settlements.
Creating a comprehensive financial report requires a lot of work and time. The process of tracking, organizing and analyzing numbers can be daunting, especially when you have to meet strict deadlines for external reporting. To streamline your financial reporting process, consider using a solution that automatically captures receipts and expense data. For example, Sage Expense Management’s real-time receipt feeds send receipt notifications to users via SMS and allows them to submit receipts by replying with a photo of the original receipt. This saves a lot of time, boosts accuracy and reduces costs.
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