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Is Your Business Using Financial Reports?

By August 6, 2018August 23rd, 2018Business Advice, Financial Reports

Financial reports are a great option to keep your finances under control. Regardless of worries you have, reports will offer comprehensive detail of your financial performance, giving you the guidance you need.

Coleman & Co create detailed financial reports for all businesses. No matter what requirements you have, all finances will be included within statements and reports.

What Are Financial Reports?

Financial reports or statements should be used by every business, regardless of your current financial performance. The report will usually be completed on a weekly, monthly or quarterly basis. Therefore, you have a good understanding of your performance over a longer period of time. Financial reports can be used for several different needs, including:

  • Cash Flow Comparison
  • Current Cash Flow
  • Current Financial Condition
  • Financial Forecasting
  • Financial Results
  • Meeting Financial Targets
  • Outline Business Transactions

With so many regular financial transactions taking place, tracking your performance can be a difficult and time-consuming task. Financial reports will reduce the stress on your role, whilst still ensuring you have the necessary information available.

Creating Accurate Forecasts

Financial reports and statements will often evaluate your current financial performance, whether this is over weeks, months or quarters. However, financial statements will also help you plan for the future by giving you a good understanding of your financial condition.

Financial forecasting will create an accurate forecast of your future financial performance and how your cash flow could fluctuate. You should always consider the future of your business and if you notice profit margins falling, accurate forecasting could be essential to turn your business around.

Cash flow forecasts will detail your future spend and revenue. Having accurate forecasts will allow you to budget your business correctly and improve financial results going forward.

Setting Financial Targets

Financial statements are much more than an overview of your performance. You should always have targets and goals in place for how successful you want your business to be. Hence, if these targets are not being met, changes need to be made. Financial reports will identify areas of improvement and where targets should be put in place.

Once you have found your areas of improvement, financial targets can immediately be put in place. This can motivate staff and improve the overall performance of your business. Some businesses may have the perfect financial report but if your profit margins could be higher, a detailed statement will help you locate the main financial weaknesses for your business and how to improve.

Recording Transactions

Every business should be bookkeeping effectively and legally recording their transactions. Whether this is for tax purposes or your own benefit it must be done. Despite this, bookkeeping can often be quite a messy process.

Regular financial statements can help record all transactions on a frequent basis, whilst creating a clear layout of all business finances. Accountants will manage all business accounts correctly and prepare for any payments including tax returns to the HMRC. Having financial statements will ensure you have the necessary records to make accurate and on-time payments.

Your Annual Report

You choose how frequently you would like financial reports and this will always help to create your final annual report. Your annual report will give you an in-depth report based on the entire financial year and assist with tax returns and other payments.

Over the course of the year, you will not always be consistently performing. Due to this annual financial reports can identify your best and worst performance, with a comparison of your financial condition over the course of the year. This should help you improve for the next financial year by finding the cause of any financial problems you encountered.

Contact Us

Financial reports and statements can be used for all businesses and are a great asset for all. Coleman & Co will help all clients throughout Lisburn, ensuring you have the best understanding of your financial performance. For more information on our services, call us today on 028 9266 3599 or fill in our contact form to make an enquiry.

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