Overview with tools, software, best practices and alternatives
What is Financial Reporting?
Financial reporting is the process of providing information and updates on the financial activities of an individual, a business, or an organization. Pertinent information on the circulation of funds is presented in the report in a well-thought-out approach.
Who is doing Financial Reporting?
Business teams do financial reporting to present the status and development of a financial project. Team members and leaders can do financial reporting to inform others the changes in the financial standing and progress of the group and the project itself. The secretary of the team or the organization is usually the one being delegated to do the task.
Why do people do Financial Reporting?
Business teams do financial reporting in several reasons.
First is communication. Team members and leaders provide information and updates on the status and progress of the group and the financial project. This way, members, leaders, and associates will be able to know what is happening in the business within a specific time frame.
Financial reporting usually involves essential information, such as the team’s achievements and activities. Along with these information, financial reports may also include part of the team’s business plan like their future plans, strategies, and actions. These information will help other members, team leaders, and affiliates to compare previous and current data, make conclusions, and make rational decisions.
How to do Financial Reporting / Ways to do Financial Reporting
Financial reporting involves essential information on the undertakings, routines, standing, and development of the management team and the project itself.
Since financial reporting involves numbers and figures, the report should contain factual, accurate, complete, and updated information. This is to enable the team formulate concrete plans, efficient strategies, and effective actions, along with distinct outcome evaluation.
The team should include essential information, such as the team’s achievements and issues, when doing financial reporting. The team’s achievements will mirror the team’s competence in the field of finance and they can inspire and motivate the team members to do well. The team’s issues, on the other hand, allow the team members to rank them in order of priority and let the finance team discuss possible ways to solve actual problems and prevent potential problems from arising.
Advantages of doing Financial Reporting
Financial reporting is beneficial to the business team for the following reasons.
Communication is the top benefit of doing financial reporting as the reports allow the team members to become fully informed and aware of the status and progress of the team and the financial project. With strong communication, the team members and leaders will be able to raise topics that need to be discussed within the team.
The achievements of the team help the members and leaders to become inspired and motivated to do better in their tasks and responsibilities. Potential affiliates, such as venture capitalists, can also see the accomplishments of the team, which can attract them to official engage with the team’s company as partners.
The issues presented in the financial report can be actual and potential. By identifying them early, the team will be able to sort and prioritize the issues of the entire group. This will also enable them to talk about possible ways to give solution or prevention to actual and potential threats to the team and the financial project.
Disadvantages of doing Financial Reporting
While financial reporting can be beneficial in a number of ways, there are also times in which it can be a disadvantage to the business team.
Virtual teams can make use of the internet in order to send the financial report to other members of the team, leaders, and business affiliates. Sending reports in e-mails using the internet is a wise, easy, and fast way to disseminate information to the team. However, poor or absent internet access will not allow the team to share information.
Financial reporting can be costly, which can be an issue to some start-up teams or businesses. The starting business may not have adequate funds yet to allocate for generation of detailed financial reports and making one will be added to their expenses. Instead of using their funds on other more important needs of the team or the business, the team has to allot it in making a financial report.
Another con of financial reporting is time. While it helps the team become informed on the status and progress of the group and the project, it can be tedious and time-consuming, eating up the precious time of the team members. As a result, they may not be able to finish or complete their pending tasks and responsibilities.
Best Practices for doing Financial Reporting
Financial reporting helps team members, team leaders, and affiliates to become fully informed, updated, and aware on the standing and development of the team and the project.
It is important that the financial report is data verified. Team members and team leaders should check their work for mistakes or errors, whether typographical or content-wise. Also, any correction to entries in previous reports should be addressed in the new report. This is to arrive at a nicely-written and comprehensive report, which will effectively convey important information to other members and leaders of the team.
Another good practice in financial reporting is the use of quantitative data. Finance involves numbers and figures within a specific time frame, so it is important to include them in the report. The team can present them effectively by showing them as well as the trends or relationships of the figures by using tables, charts, graphs, or diagrams.
Organization is the key in financial reporting as an organized report with a good flow of information best conveys the message coming from the team members and leaders. To maintain organization of the repot, the team can make use of headings and sub-headings to guide the readers of the report and to help them locate salient or information of high priority. Also, the team can also use bullets in listing the information in the report to effectively give a rundown of the status and progress of the team.
Completeness and accuracy of information are two pillars of a good report. A report should contain all important details about the status and progress of the team and the project, as the information will serve as the team’s basis in formulating plans, developing strategies, and executing actions.
How to do Financial Reporting with Teamreporter
Teamreporter is a business application that aims to reduce the number of status meetings of the team by using scheduled report mails. Signing up for an account just takes less than a minute and teams with up to four members can use the application free of charge.
The application has a type of interface that is automated and easy to use; allowing members and leaders can share information easily and fast. Teamreporter sends them e-mail notifications, asking them to send information on the team’s accomplishments, problems, and plans. Based from the answers of the team, Teamreporter will generate a data summary, which will be sent to the team the next day.
Teamreporter is also a flexible application, as team members and leaders can change the questions and the schedule of the report mails on its interface. Also, team members can change the list of members who need to send reports and those who will receive the reports. It can be also used along with other applications that the team is already using. These features make Teamreporter useable by teams in any work place or environment.
Team leaders can also benefit from Teamreporter as they can have a clear oversight of the team’s activities and performance. Also, team leaders will be able to identify team members who perform well in the group, as well as those who need further assistance. In addition, team leaders can use Teamreporter’s information when they evaluate the team and the members, as well as when they make their reports and training modules.
Alternatives to Financial Reporting
While financial reporting can be helpful to the business team, there are other options that the business team can take into account when it comes to financial reporting.
With the power of the internet, the team can make use of e-mail reports and updates to provide information and updates to the business team members and leaders. Working with e-mail updates just requires a laptop or a smart device, along with a stable internet connection. This way, team members will be able to send and receive information to and from other members of the team with speed and ease.
Along with e-mail updates and reports, the team can also conduct status meetings to discuss important information about the status and progress of the team and the financial project. Status meetings are quick ways to update the team in various aspects of the project and the team, such as the team’s achievements, issues, and plans. The team can also talk corrective and preventive actions for deviations in the company’s protocol if applicable.
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