What is the Purpose of Financial Reporting?

Accountants know the importance of financial reporting. Financial reports not only allow companies to distribute financial information to those outside of the company, but they also offer internal insight to the leadership team on what’s working, what’s not, and how to fix it.

Financial reports can include:

  • Financial statements (such as income statement, balance sheet, statement of comprehensive income, statement of cash flows, and statement of stockholders’ equity)
  • Quarterly and annual reports
  • Quarterly earnings distributed externally via press releases, conference calls, or company website
  • Quarterly and annual reports for governmental agencies such as the Securities and Exchange Commission (SEC)

Financial reports are important in terms of reputation, compliance, and keeping a finger on the pulse of the business’s overall health. More important than the reports themselves, though, is the accuracy of the reports. The importance of reliable and accurate reports cannot be understated. Providing accurate information is arguably the most important aspect to staying in good standing, especially in terms of transparency.

Quality reporting solutions should:

  • Increase productivity and reduce risk of error
  • Provide 24/7 access and increase security
  • Above all else: be accurate

Increase productivity and reduce risk of error

Because cloud accounting software is automated, building reports is a breeze, and you can count on the accuracy of the data. This gives time back to your staff to focus on other areas, and saves your company money. With staff time spent on reporting reduced, you may opt to reduce your workforce, or you may find the opportunity to bring outsourced services back in house. You can also save on IT infrastructure.

Provide 24/7 access and increase security

Cloud reporting software is available through any browser with an internet connection. Long gone are the days of only having access to data when you have access to your work computer. This means that in the event of travel, inclement weather, or family emergency, any and all staff members with the right permissions can build out the reports they need at a moment’s notice. This accessibility also means that your data is more secure and less prone to cyber attack or local theft as information is encrypted and stored in the cloud as opposed to local servers.

Be accurate

Fast reporting is nothing if it isn’t accurate. Software solutions like those offered by FYIsoft make sure that you can trust the output. Schedule a brief demo with FYIsoft today. FYIsoft provides solutions that enable you to report your company’s finances in an accurate and timely manner to keep your business on track and your staff’s time where it matters most.

 

By |2019-06-07T09:03:52-04:00June 7th, 2019|Financial Reporting|0 Comments