A financial report is a document that shows where your company’s money comes from and where it’s going. It’s a key part of the financial health of your business, helping to track cash flow, set budgets and benchmark performance.
Financial reporting provides a clear view of your company’s finances and supports effective decision-making, transparency and accountability. It also serves as a foundation for attracting investment and securing credit opportunities.
Depending on your industry and regulatory framework, financial reports may use Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS) or both. To create a financial report, collect and reconcile all relevant data from sources like sales invoices, purchase orders, expense receipts, bank statements and payroll records. Then, format your data into a clear and easy-to-understand narrative using one of our ready-made financial report templates.
Income Statement
The income statement gives a snapshot of your company’s performance over a specific period, including revenue and profit. It also includes a breakdown of cash inflows and outflows from operating, investing and financing activities. This is a key indicator of whether your company is generating enough cash to cover expenses and investments, as well as how much it relies on external funding.
Balance Sheet
The balance sheet illustrates the amount of assets, liabilities and equity at a specific point in time. It is a critical indicator of the financial health and efficiency of your company, as it shows how your company’s resources are being utilized and reveals any hidden costs.
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