A financial report is a document that presents the results of your company’s finances for a specific period. These reports are essential to help you understand your current financial health, track budgets and performance, spot trends and opportunities for cost-cutting and expansion, and make informed decisions about the future of your business. Sophisticated tools like Pipedrive make it easier to communicate these important insights across departments and stakeholders with a visual dashboard that highlights key metrics.
Financial statements cover the beginning and ending accounting balances for each general ledger account at a given point in time, including assets (cash and cash equivalents, marketable securities, inventory), liabilities (accounts payable, short-term loans), and equity (ownership stake). Determine the type of report you’re writing—as outlined by Generally Accepted Accounting Principles or International Financial Reporting Standards—and the length of the reporting period (monthly, quarterly, annually).
Regardless of how your organization makes money, it’s important to share accurate and regular financial reports to ensure transparency with investors and other stakeholders. These reports give a clear picture of how much your company is earning, how it’s spending and where it’s investing—helping potential customers, partners or suppliers gauge your reliability and trustworthiness. Providing transparent, regular reporting also helps you negotiate better terms with lenders or credit agencies and maintain regulatory compliance. Ultimately, strong financial reporting is the foundation of your company’s success.
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