Here are some tips to get the best out of your financial reports
1. Make the necessary time for financial reporting
Managing your financials is one of the most important business activities you can do. It delivers the necessary information to set the business strategy and to understand in plenty of time whether your business is facing a challenge or an opportunity.
2. Ensure your financial statements are accurate and clearly formatted
Make sure your financial reporting format is clear so reports can be easily used for management decision-making.
3. Undertake timely financial reporting
This will enable you to focus on current issues and future plans and examine and correct any weaknesses in your financial systems.
4. Understand the key business drivers
If necessary, get your accountant or business advisor to walk you through all the numbers and what they actually mean. Only by understanding the key business drivers and the resulting impact on the numbers can you make wise business decisions.
5. Ensure you have the best systems and processes in place
This will enable you to have both timely financial reporting and allow you to make decisions based on up-to-date information.
6. Ensure you have timely production of accounts
The production of financial statements with a clean audit report provides everyone with assurance of good financial governance. This enhances a company’s ability to plan for the future and support budget setting arrangements.
7. Develop benchmarks
Use financial reports to empower the entire organisation. Understanding what constitutes a strong performance makes it easier to identify underperformers in the business, and opportunities for improvement. Early identification makes it easier to provide help and intervention that can improve performance and profitability.
8. Use the right technology
Investigate systems that can simplify the process of financial reporting while delivering invaluable insights and information. Look for systems that can gather and analyse data from all sources in the business to give you the information needed to drive top-line growth, bottom-line savings and manage risk.
9. Seek expert advice
A strong relationship with your accountant and business advisor can help ensure better financial reporting and earlier awareness of opportunities and threats.