A financial report is a comprehensive statement of your business’s assets, liabilities and equity on a certain date. This document adheres to a set of taxation, accounting and legal requirements, which vary from country to country – although the US currently uses the Generally Accepted Accounting Principles (GAAP). Financial reporting is a method of communicating the financial health of your company to stakeholders. It’s used by external parties like regulatory agencies, current and potential investors and lenders, as well as internal management teams to inform decision-making. Accurate and timely financial reporting is essential to your company’s success.
For Investors
In addition to illustrating your current income, a financial report can also provide context for future investments. For example, a statement of shareholders’ equity will help your investors understand why your business’s equity increased or decreased over time, allowing them to make informed investment decisions.
For Employees
Whether you’re a startup or a large corporation, employees can benefit from access to clear and understandable financial analysis reports. These reports can show the company’s progress, highlight key metrics, and provide insights into how to improve operational efficiency.
Creating accurate financial reports requires a lot of data collection, organization and verification. This can be a laborious process for many people, but using a financial reporting tool can speed up the process and ensure accuracy. FineReport, for example, can connect to multiple operational and accounting systems to accelerate data collection and automate the report preparation process. It can also visualize your data to help you analyze it quickly and easily.
