Ensuring timely and accurate Financial Reports is essential to businesses. Both management and external stakeholders - like banks or investors - will be interested to analyze the company’s financial health. In most cases, it is also mandatory for companies to prepare Financial Reports.
We live in a fast-changing world where digitalization brings great opportunities. Thanks to affordable digital tools you can now upgrade your old-fashioned accounting processes and forget about manual bookkeeping, redundant work, and inaccurate reports.
Embrace technology to ensure smart and reliable Financial Reports!
What is Financial Reporting?
Financial Reporting is a standard accounting practice that uses Financial Statements (FS) to disclose a company’s financial information to its stakeholders and the public.
After recording and posting your transactions, the FS will report the performance of the company over a particular period, usually on an annual or quarterly basis. Financial Statements are categorized into four types:
Income - or Profit and Loss (P&L) - Statement: this financial statement shows the company’s income and expenditures in a certain period of time and presents whether the company has profit or loss.
Balance Sheet (BS): also known as Statement of Financial Position, this reports the company’s assets, liabilities, and shareholder equity at a specific point in time.
Statement of Cash Flows: this statement summarizes the amount of cash that comes in and comes out in the company and breaks the analysis down to operating, investing, and financing activities.
Statement of Owner’s Equity: this presents the changes in the owner's capital at the start of the period, the changes that affect capital, and the resulting capital at the end of the period.
Upgrade your Financial Reporting with Cloud-based Solutions.
Changing the way you have been doing things may seem unnecessary or overwhelming… However, we strongly believe that continuously upgrading your finance processes with the latest tools available is absolutely necessary for a growing business aiming to become and stay an industry leader!
1. Embrace Technology
Transforming your organization’s financial systems in a streamlined and efficient way will benefit your business in many ways.
This will help your business scale thanks to digital and automated processes. You will be able to do more with less effort and at a lower cost. Eliminating paper-based transactions and spreadsheets for bookkeeping will give you access to live financial information that you can use to make business decisions.
Embracing technology goes further than your accounting process: Sales, HR, Payroll, Inventory, etc. They can all be managed and integrated within a single Enterprise Resource Planning (ERP) system. Be smart and get the solutions that match your business needs!
Through advanced digital financial tools, you can record, collect, manage, organize and generate Financial Statements from any device: laptop, tablet, smartphone!
3. Automated Financial Reports
With cloud-based accounting software, you are seamlessly preparing your FS!
When you prepare an invoice for your customer or upload a bill from a supplier, the related revenues and expenses will be automatically reflected in your P&L. Your Balance Sheet and the other financial reports will be completed automatically in the same way.
Generate your Financial Statements in 3 Easy Steps with Odoo Accounting!
Odoo is our preferred solution for finance and accounting. Also thanks to its database of integrated apps, Odoo is a complete ERP and can help you with all your business processes: HR, Sales, Marketing, eCommerce, etc.
1. Record your Daily Transactions in Seconds
From the Accounting Dashboard you have direct access to your “Customer Invoices”, “Vendor Bills” and your “Bank(s)” :
Create and send your Customer Invoices :
Upload and record your Vendor Bills :
For each transaction, you can easily record payments, add attachments, write notes and even tag and message people involved :
Odoo Accounting can help your business in making your Bank Reconciliation simple and automated.
You can view our previous article to know more about the Bank Reconciliation Process in Odoo: Bank Reconciliation: Why is it so important for your Business?
Using Odoo Accounting, Financial Statements are generated automatically and can be exported in Excel :
For example, access your P&L and see the data per year, per month, etc.
We now understand what Financial Reporting is all about and how Financial Statements can be easily prepared using your cloud-based accounting software.
However, it is important to note that having accurate Financial Statements is essential but most probably not enough! You also need internal reports that will give you detailed insights about your performances like a breakdown analysis per product, per business unit, per branch, etc. Or specific metrics like Average Market Basket (for eCommerce), Average Daily Rate (for hospitality), or Annual Revenue per Employee (for professional services).
These reports are usually called Management Reports.
We’ll share everything you need to know about Management Reporting in a future blog post!
Proseso Consulting - Your digital accounting and finance consultant focusing on growth
Proseso Consulting provides tailored business advisory and finances managed services (bookkeeping and accounting, outsourced and automated payroll, tax compliance, financial reporting, etc.). We are implemented in the Philippines and in France and our objective is to support the projects of ambitious companies and professionals. We are here to help you achieve your long-term business goals!
Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.
This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.