A financial report is a document that provides insights into a company’s finances and position, ensuring transparency and accountability. It also supports effective decision-making, financial stability, and strategic planning.
Whether you’re creating an income statement, balance sheet, cash flow statement, or statement of shareholders’ equity, financial reports are designed to be comprehensive and understandable. However, putting together a financially sound report requires meticulous care and attention to detail. A single error can undermine a financial report’s credibility and tarnish your brand.
Consider your audience when designing your financial report. Your audience’s background and level of financial literacy will help you determine what information to include and how it should be presented. For example, a board member with an MBA may be well-versed in acronyms and capable of reading complex graphs, while another with a more general business background may feel overwhelmed by too many details.
Use clear, plain language to make your financial report accessible to a wide range of stakeholders. Avoid jargon and be sure to check all calculations, data, and information for accuracy. It’s a good idea to have someone else vet the report as well, to catch any errors or discrepancies.
Using financial reporting software can make the process easier and more efficient. For instance, Fyle combines your business credit cards with everyday tools like Slack and Outlook to automatically send receipts for expenses, saving you time and reducing the likelihood of errors. Organizing your data in a spreadsheet and using visualizations can simplify the process of creating a financial report, too.