Financial Statements & Reporting

Stakeholders and interested parties can be other companies, investors, shareholders, banks, the government, credit vendors, people who are considering lending money to a company, etc.

If you are considering investing money in a company, you’d want to know how well that company is doing according to a standardized gauge, not some measure that a company has cooked up to make itself look good. You’d also want to have an accurate understanding of how likely you are to be paid back so that the interest you charge can reflect that.

If you own equity in a firm or an investor who owns a major equity position, then you’d insist on full disclosure of all assets, liabilities, use of cash, revenues, and associated company costs.

All parties would want to be able to identify if the company is doing something it shouldn’t.

Remember: the government and/or outside investors don’t care WHY your financial reports are inaccurate – all they’ll do is penalize you for being wrong.

Financial reports on their own are not the best tools for making all internal business decisions. However, in conjunction with business intelligence tools and other management reports they can facilitate decision making.

Real-time tracking

By gaining access to centralized, real-time insights, you will be able to make accurate, informed decisions swiftly, thereby avoiding any potential roadblocks while maintaining your financial fluidity at all times.

The online dashboards provide at-a-glance information on the financial health of your company, for both yourself and others.

Avoid running into trouble

Legacy methods (such as one massive spreadsheet that multiple users have access to, or a number of disparate sheets from various sources that do not add up) can spell disaster.

It’s crucial that financial reports are as accurate as possible – otherwise, any management reports (and ensuing decisions) based on them will be flaky at best.

Reap the benefits of financial reporting tools

Use financial dashboards for informed decision making.

Let us help you install a Business Intelligence System of your own, and do the heavy lifting for you.

It is absolutely crucial that your financial analysis and reporting should be accurate, cohesive, and widely accessible so that critical financial information can be shared throughout your organization.

If your financial insights or data is fragmented, things are likely to fall apart sooner rather than later.

As you know, debt can cripple the progress of any company, regardless of sector. While there may be many different types of financial reporting concerning purpose or software, almost all solutions will help you track your current assets divided by the current liabilities on your balance sheet to help gauge your liquidity and manage your debts accordingly.

Regardless of what area of financial activity you’re looking to track, this kind of reporting will help you identify trends, both past and present, which will empower you to tackle any potential weaknesses while helping you make improvements that will benefit the overall health of your business.

The importance of financial reporting is two-fold: for raising funds more accurately and managing your funds more compliantly.

Standardized financial reporting and analysis can assist organizations, regardless of industry, to raise capital both domestically and overseas in a well-managed, fluent way.

Business Intelligence Systems and Software (BIS) and Management Information Systems (MIS) have reporting tools that will give official, concise, consistent, accurate, and compliant information.

Managing your liabilities is a critical part of your company’s ongoing financial health. Business loans, credit lines, credit cards, and credit extended from vendors are all integral liabilities to manage.

If you’re planning to apply for a business expansion loan, financial statements will help establish if you need to reduce existing liabilities before making an official application.

Analytical financial reporting offers an opportunity to identify previously missed opportunities and improve your financial efficiency.

Big or small, an organization’s cash flow is essential to its ongoing financial health. Working with a mix of detailed metrics and KPIs, it’s possible to drill down into cash flow in relation to anticipated profit and liabilities, keeping your monetary movements secure and fluent in the process.

Unlimited access to essential financial insights and data helps staff respond to challenges swiftly while improving internal communication across the board. If everyone understands emerging trends and can share vital financial data, they will become more efficient and innovative. Compliance issues or errors can be prevented.

Ratios are essential to a business’s fiscal management initiatives.

Financial ratios help break down the colossal sets of financial data to a number. This number is a representation of the business that can easily be understood and worked with.

Critical financial reporting ratios include e.g. Working Capital Ratio, Quick Ratio, Return on  Equity (ROE). There are many others that help identify the health of different aspects of your enterprise.

A ratio gives your data form and direction and valuable comparisons can be made over different reporting periods.

Know your numbers, ratios and KPI’s

To ensure the entire operation runs with maximum efficiency, you need to know your numbers.

Visual reporting for instant insights

Graphs, charts and stats, displayed in a visual format, provide a wealth of performance-based information at a glance. These visual reports are essential tools for accurate benchmarking and real-time decision-making.

With practice, this wealth of insight can help preserve your company’s financial health while you develop initiatives to tip the fiscal balance in your favour and boost your bottom line.

Business Intelligence Systems/ Software (BIS) provide a plethora of data reporting and predictive capabilities that can reduce financial risk significantly.

With the right mix of metrics and with dynamic, visual, and interactive KPIs, you will be able to anticipate trends.

• Performance Metrics: You will notice dips or jumps in performance and see positive or negative patterns unfold.
• Work smarter not harder: You would be able to make smarter decisions and investments.
• Take preventive action immediately: Notice potential threats sooner. Put systems or procedures in place to protect your company from inefficiencies, and avoid risk or catastrophe.
• Safety cushion: You will be able to determine if you can remain financially solvent even if some pretty catastrophic things happen to the economy.
• Compliant Audits: Financial analysis and reporting facilitate statutory audits. Auditing firms independently review companies’ financial reports to prevent inaccuracies. (legal requirement)
• Prevent fraud: A data analytics dashboard can highlight fraudulent activity.

NOTE: Research shows that 46% of companies across sectors have fallen victim to financial fraud in the past two years.

It is essential to protect yourself from internal or external cyber-related crimes.

Deciding whether to purchase a company’s stock is a good idea: If you’re considering investing in a company (as an individual or on behalf of your current organization), financial reporting analysis can provide some relatively real, hard data to help make your decision and give insight into whether a company is potentially under- or overpriced in the stock market.

• How do you tell how much money your company is making after paying all of your expenses and payroll?
• One of the main reasons a company exists is to make profits for itself and its shareholders.
• Is the company sustainable? Will it survive into the future?
• How much cash ‘runway’ do you currently possess? How long will you be able to keep the doors open given your current income and expenditure? Are revenues likely to rise or fall over the next few months compared to your best guess projections?
• Do you have the capital to invest in new lines of business, products, services?
• Are your vendor relationships as healthy as they should be, or as you would like them to be? All business’ vendor or supplier relationships are tightly linked to any company’s ongoing financial health.

Without financial statements, it’s difficult to know one way or the other.

Through frequent benchmarking and analysis, you will improve your chances of identifying any abnormalities to prevent dire consequences and/ or grab opportunities and maximise potential.

Upgrade your business.

Let us help you choose and install the best solution for your business right now.