One hundred dollar Australian bank note used to prepare financial reports

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Nine tips for quality financial reports

Quality financial reporting is beneficial to your business, both during the financial year for critical management decision-making, and also for when you prepare your accounts.

Here are some tips to get the best out of your financial reports

1. Make the necessary time for financial reporting

Managing your financials is one of the most important business activities you can do. It delivers the necessary information to set the business strategy and to understand in plenty of time whether your business is facing a challenge or an opportunity.

2. Ensure your financial statements are accurate and clearly formatted

Make sure your financial reporting format is clear so reports can be easily used for management decision-making.

3. Undertake timely financial reporting

This will enable you to focus on current issues and future plans and examine and correct any weaknesses in your financial systems.

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*Based on 958 meters switched between 1 July 2019 to 3 April 2020

4. Understand the key business drivers

If necessary, get your accountant or business advisor to walk you through all the numbers and what they actually mean. Only by understanding the key business drivers and the resulting impact on the numbers can you make wise business decisions.

5. Ensure you have the best systems and processes in place

This will enable you to have both timely financial reporting and allow you to make decisions based on up-to-date information.

6. Ensure you have timely production of accounts

The production of financial statements with a clean audit report provides everyone with assurance of good financial governance. This enhances a company’s ability to plan for the future and support budget setting arrangements.

7. Develop benchmarks

Use financial reports to empower the entire organisation. Understanding what constitutes a strong performance makes it easier to identify underperformers in the business, and opportunities for improvement. Early identification makes it easier to provide help and intervention that can improve performance and profitability.

8. Use the right technology

Investigate systems that can simplify the process of financial reporting while delivering invaluable insights and information. Look for systems that can gather and analyse data from all sources in the business to give you the information needed to drive top-line growth, bottom-line savings and manage risk.

9. Seek expert advice

A strong relationship with your accountant and business advisor can help ensure better financial reporting and earlier awareness of opportunities and threats.

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