Financial Reporting 101

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Hello all!  Welcome to your first day in Financial Reporting 101. I will be your teacher for the next few minutes. By the end of this article, I hope to cover three essential areas for you: 

  1. What is financial reporting? 
  2. Why is it important? 
  3. How to enhance your reports.

Please save all questions for the end in the comment section. If you need to use the restroom, please feel free just to go; no need to raise your hand and ask permission. 

Alright then, let’s get started.  

What is Financial Reporting?

According to Xero, “The objective of financial reporting is to track, analyze and report your business income. The purpose of these reports is to examine resource usage, cash flow, business performance, and the financial health of the business. This helps you and your investors make informed decisions about how to manage the business.”

Here at Reach Reporting, we believe financial reporting is SO much more than raw data in a spreadsheet. It is the story of your client’s business. A well-constructed financial report gives your client all the relevant information they need to make prudent financial decisions in a digestible, easy-to-understand form. 

Yes, its purpose is to “examine resource usage, cash flow, business performance, and the financial health of the business” but it can and should be so much more than spreadsheets, line items, and calculations.

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Financial reports are more than spreadsheets, line items, and calculations. They should be a story of your client’s business.

Why is Financial Reporting Important?

Imagine you are trying to land an airplane (just go with my analogy here).  In an emergency, you are on the radio (phone? Intercom? What do pilots use?), and this is the help you receive: 

“Cherokee 8121K, Greensboro Approach, squawk 2150 and ident.”

Um, excuse me? Boom. Plane crash! 

The same thing happens when you send your non-accountant client a spreadsheet full of numbers and equations that are utterly a foreign language to them. They have no idea what the next step is.  They have no idea if they need to streamline their production costs, expand a particular product, or cut costs dramatically. 

Um, excuse me? Boom. Business crash! 

Well-crafted financial reporting is vital to the survival of any business. If a company has no direction or a clear understanding of where they are, making the best decisions for the future will be extremely difficult. 

How to Enhance your Reports.

Financial reporting is complex. It can be time-consuming to put together. Accuracy is vital; one wrong equation and the data is skewed. 

Enter Reach Reporting. 

Reach takes financial reporting to the next level. Our entire mission is to make financial reporting easier for the CPA to create AND easier for the client to understand. 

Here’s how it’s done:

Reach Reporting auto-populates every report, dashboard, statement, and metric with your client’s financial data creating a professional product in a fraction of the time. Once your accounts sync with Reach Reporting, presto – magic-o; auto-populated reports! 

Second, regain the hours you spent manually inputting data. Once you create a customized report or select one from the templates provided, you can standardize it and use it repeatedly. Produce insight that literally develops before your eyes in a fraction of the time while increasing accuracy.

Lastly, business decision-makers will be impressed with the insightful information you provide them. Best of all, they can access it anywhere and quickly share it with other decision-makers.

See How Reach Works.

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In order to help you the best, tell us what kind of business would describe you?

Final Thoughts

Thank you all for your attendance in this brief but very insightful class today. As you have learned, financial reporting taken to the next level is the key to your success as a CPA and your client’s financial understanding. 

Please feel free to contact us in the comment section below if you have any questions. 

 

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