Reporting on the past year in business is essential for you to plan for the year ahead. Preparing financial statements is a time-consuming process, especially when you have to analyse results and produce reports. Outsourced accounting services usually include the production of reports.
Why is it necessary?
A business report is produced to indicate specific information about your enterprise to others. This may be for your investors, employees or a lender. At the end of each fiscal year, a financial statement may be produced to indicate the performance of the business during the past year, including the highs and lows. You may need this type of report when applying for finance or to attract investors. There are many reasons why you need reports, including a demonstration of the achievements of the company, possibly for employees.
Types of business reports
Reports make it possible for you to present information, facts and figures for analysis. You may produce an informational report that is free of opinion, offering facts of the business, perhaps details about the number of employees, or the annual spending for each department of a company. Analytical reports are also widely produced, especially before making any important decisions. This type may be used for the company’s marketing, comparing the results of various promotional methods.
What is a financial statement?
A financial statement, or report, will provide details of business income and expenditure, its cash flow, and the balance sheet. This can be used to look at the successes of the previous period of trading and how improvements may be made for the next period. A financial statement will help to ascertain whether or not business debts can be repaid, and whether the business can generate a sufficient profit for the next period.
If you would like to know how reports could help your business, contact our team today.