A financial report is a comprehensive snapshot of a company’s assets, liabilities and equity at a point in time, typically at the end of a quarter or fiscal year. It lists all the cash inflows and outflows from operating, investing and financing activities and classifies assets as current (expected to be converted to cash within one year) or noncurrent (beyond a year). It also shows profits and losses. It may also include notes to financial statements that explain accounting policies and major events, contingencies and other details not apparent in the core statements. Public companies are required to file these reports and make them available to the public to comply with legal requirements.
Financial reporting gives managers, investors and shareholders a detailed look at a business’s finances. It helps them assess performance, identify trends and opportunities, and take action in a timely manner. This is essential for businesses of all sizes to survive and thrive in the competitive marketplace.
A comprehensive set of financial statements is required for federal agencies, as well as private businesses seeking venture capital or loans. They must be prepared in accordance with Generally Accepted Accounting Principles, and must be audited by the Government Accountability Office or another agency designated by law.
Creating accurate financial reports requires the right tools and processes, and can be an exhausting and time-consuming task for many businesses. Leveraging automation turns the process into a collaborative team sport, where Finance teams partner with other stakeholders across the business to drive business and financial success.