Provide Meaningful and Measurable Reports

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Quality financial reporting is vital to help point your client in the right direction. By ensuring your reports are meaningful and measurable, you are showing your knowledge of your client’s company, its current situation, and its goals. 

Reach Reporting has put together a few simple first steps to get you on the path to meaningful, measurable reports.

Take Stock of the Client, their Employees, and their Stakeholders.

Identify these groups and determine what financial information is important to each group; only some need all information. Data overload happens in too many companies. Helping your clients provide the correct data to the right managers helps eliminate data overload and confusion throughout departments. People focus better and fulfill their duties when receiving essential information. 

Each department has different needs and wants. Customizing each group’s financial report provides meaningful information and eliminates confusing unessential.  

Providing the correct information to the right people is the first critical step in getting everyone going in the same direction to achieve goals that will help the company succeed.

Develop and Report with Purpose-led Metrics

The CEO will require vastly different information from the HR manager or department manager. A majority stakeholder is infinitely more interested in how their investment is doing, not necessarily the budget for capital expenses for the year. 

Once you factor in what is essential to each person, reporting with purpose becomes MUCH more accessible. The best way to learn this information is to get to know people, company and department goals, deadlines, and the metrics that keep leadership up at night.

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Starting tips for purpose-led reports:

  • Everyone needs to be on the same page; standardize your reporting across the board. We encourage you to use reporting software. (Of course, we recommend Reach Reporting)
  • Establish a reporting schedule and stick to it. 
  • Provide comparison metrics to see if departments are moving in the right direction to meet company goals. 
  • Keep the reports short but not lacking. Your clients will typically overlook reports with more than twenty pages.
  • Provide a view of how financial decisions may impact the business over time with forecasting models.
  • Place data in context. Including metrics on the industry and markets can be vital to decision-making.   

Reevaluate 

Meaningful and measurable financial reporting is not a one-and-done sort of thing. The only constant in life is change. Ensure the reports are understandable and contain the data that answers questions and lead to action. 

Consistently reviewing reports with your clients and evaluating your reporting process will bring the best results. 

Final Thoughts 

Businesses can’t succeed by turning to misaligned financial reporting that diverts attention and challenges confidence in the company’s direction. Reporting must be meaningful and deliver easy-to-understand data that allows decision-makers to improve the performance and profitability of their departments.

 

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