A financial report is a document containing a company’s past, present and projected finances. It is usually produced quarterly or annually and used by both external and internal stakeholders. The main difference is that external reporting tends to have more stringent requirements than internal reports. This is because it is typically used by outsiders like investors, regulatory bodies and trading partners.
Gathering and preparing the necessary data for a financial report can be time consuming and labor intensive. This is because it involves collecting original receipts, organizing them into relevant accounting vouchers, and calculating the corresponding figures. However, using a professional reporting tool such as FineReport can make this task less tiring and improve work efficiency. This software also supports data connection from different systems, and enables real-time data updating, allowing you to create and modify financial reports at the touch of a button.
To prepare a financial report, start by reviewing the governing documents for your organization, such as its bylaws or corporate charter. These will describe how often the report should be prepared and who is responsible for it. Next, review the company’s ledgers to ensure that all information is up to date. Finally, decide if you want to include an explanation of accounting practices or any other important information in the report’s notes section.
When writing the main content of your financial report, focus on the key metrics and insights that align with the purpose of the report. Avoid overwhelming readers with excessive data or technical details. Instead, highlight the most significant information that explains how your company is performing and where it is heading in the future. Also, provide historical context to allow readers to comprehend the significance of key metrics over time.
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