Financial Reporting and Analysis

The main purpose of financial reports is to show a snapshot of the overall health of a company for a specific time period. The reports are great tools to help judge how well the company is doing now, and the information is also used to forecast the future of the business. The data on the reports will reveal areas of strengths and weaknesses which is helpful information when making decisions on your company’s various strategies or objectives.

What is a Financial Report?

A financial report shows how the company is performing within a set period of time. We can provide this information to our clients on monthly, quarterly and annually, depending on preference.

What Information is Included in Financial Reports?

Financial reports typically consist of three documents that provide a picture of the company’s financial health. These documents are a balance sheet, a profit and loss statement, and a cash flow statement.

Balance Sheet

• Has three components: assets, liabilities, and capital
• Shows available capital, what the company owns (assets) and what the company owes (liabilities)

Profit and Loss Statement

• Shows the revenue and expenses for a specific period
• Calculates the company’s net profit

Cash Flow Statement

• Shows how changes in balance sheet accounts and income affect cash
• Breaks the analysis down to operating, investing and financing activities

These reports allow us to provide a picture of the financial health of our client’s companies, and explain what options they have for improving.

What is the Purpose of Financial Reports?

The main purpose of a financial report is to give the decision-heads a snapshot of financial data for a specific time period. The information helps management discern the how well the company has done for the previous quarter. It also displays strengths and weaknesses that allow changes to be made to the company’s strategies or objectives.

Monthly financial reporting

Having this information available monthly allows you to monitor your budget and make immediate adjustments if necessary. We encourage you to communicate with us so that we can help you to interpret these reports in a way that will help you make informed decisions about your business.

Budgeting and Forecasting

Budgeting and financial forecasting are financial planning techniques that help businesses in the decision making process. Budgeting uses estimation to quantify the expectation of revenues a business wants to achieve for a future period. Financial forecasting is used to estimate the amount of revenues that will be achieved.

Budgeting

When creating a budget, it’s important to include all expenses as accurately as possible. We encourage our customers to be thorough when providing us with their monthly transactions. We monitor expenses and revenue every month, which will help you decide if you have allotted too much money in one area and not enough in another. We compare your spending and revenue to the previous month to assess how your financials are changing, and alter the budget accordingly. We recognize any fluctuations and assess them as they happen.

Forecasting

Forecasting predicts a company’s future financial performance based on its history. Where a budget is an itemized report, forecasts show potential trends. We create these forecasts to assist you in predicting your company’s growth and potential future challenges.