When it comes to making financial reports, many businesses can go into a period of brief chaos. Not only can they be extremely complex and difficult to put together, but in doing so a great deal of your company’s time and energy can be wasted on correcting mistakes and making sure everything is in order.
But they needn’t be a chore. Just like anything, making a financial report does have several very important keys to make the process extremely easy. Below are just a few.
Keep financial report periods shorter
All financial reports are usually presented either quarterly or annually. Both have very definite benefits and drawbacks. Presenting reports annually can lead to a much clearer overall picture of your company’s present state, but this can take a lot longer to put together. Making quarterly reports, however, can be much easier with less information to have to collate. Quarterly reports are a good solid place to start.
Use in conjunction with financial management software
Using financial management software such as Sage One will help you collate all your information and makes for an easy reporting tool when it comes to tracking, logging and collating all of the company’s business information, incomings, outgoings and overheads.
Attempting to do this freestyle can lead to erroneous calculations that could be potentially serious for a company, especially as financial reports are often for the use of official bodies. Financial software will also let you log all of your businesses transactions in real time and not leave anything out that could be of supreme importance.
Label everything clearly
When working with spreadsheets to collate the raw data before it is presented, it is absolutely essential that all of them are labelled correctly and thusly avoid anything being put into the wrong bracket accidentally. This is a very easy task to do before all the information is gathered up, but not doing so will quickly see the confusion mounting up under the weight of a month’s worth of business transactions.
Present them in simple yet elegant forms
When you deliver your reports, do so in a fashion that is simple and uncluttered. Simple pie charts and graphs are a very effective way of underpinning all of the heavy information contained within the report itself. It can also be a great way to present the information to employees regarding the company itself and areas which require a little rethinking to run smoother with lower overheads.
Triple check anything manually inputted
Information, which has been manually inputted, must be checked and double-checked and checked again. Human error is the main reason for miscalculation but can be easily avoided if careful.
For those looking for further help you can even find guides available from the government. Their ‘Simpler Reporting for the Smallest Businesses’ is a great place to start and can be accessed online.