A financial report is a summary of a business’s financial health over a given period. It typically includes essential statements like a balance sheet, income statement and cash flow statement.
A comprehensive financial report can help you attract investment from investors, while demonstrating your company’s stability to lenders. It can also support budgeting and financial forecasting. Plus, it can help you comply with regulatory requirements and legal filings.
This document shows the relationship between what a company owns (assets) and what it owes to others (liabilities and shareholders’ equity). This gives stakeholders a 360° view of a business’s finances.
Also known as a profit and loss statement, this is a detailed account of a business’s revenue, operating costs and net earnings for a given period. Investors review this report to assess profitability and growth potential.
This is a summary of the inflows and outflows of cash within a company, including operational expenses, investing activities and financing transactions. It can also include details of stock issuance and retained earnings.
Whether you’re looking for ways to cut costs or boost sales, a strong financial report can provide you with the insight you need to take action. The key is to create a reporting framework that’s clear, consistent and easy to understand. This way, you can turn financial reporting from a time-consuming admin task into a collaborative team sport that drives business success.
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