A financial report is a document that provides transparency into a company’s finances. It includes a summary of a company’s income, expenses and assets, and it lists the amount of money coming in and going out at a certain point in time.
Financial reports allow businesses to evaluate their performance over a specific period of time, by analyzing trends and identifying areas where improvement is needed. They also help businesses comply with regulations and legal requirements.
The key to creating a reliable financial report is using data that’s accurate, up-to-date and clearly presented. Choosing the right template for your reporting needs helps ensure that all of these factors are met. Keeping the process as efficient as possible can also make a big difference when it comes to creating a financial report. Using tools like Fyle, for example, allows employees to snap a picture of receipts and submit them instantly via text or within everyday workflows, saving time and making expense tracking easier.
Identifying gaps between actual and budgeted figures can also be helpful. This is often done through variance analysis, which involves comparing actual results with the expectations set in your budget to highlight any issues that need to be addressed.
It’s important to carefully review each aspect of the financial report before submitting it. This will help ensure that all calculations and information are correct and that the report meets Generally Accepted Accounting Principles (GAAP) standards, International Financial Reporting Standards (IFRS) or other regulatory standards.