Financial Reports That Help You Make Better Business Decisions

Do you understand how your business is really performing?

Year-end accounts tell you what happened after the year has finished. By then, the opportunity to correct a problem or respond to a change may have passed.

Financial Reports give you useful information throughout the year. They help you see what is working, what is changing and where action may be needed.

A report on its own, however, is not enough. We explain what the figures mean, highlight the issues worth discussing and help you identify what should happen next.

Signs you may need better Financial Reports

You may benefit from regular Financial Reports if:

• You only find out how the business performed when the year-end accounts arrive.
• You cannot easily explain changes in profit or cash.
• Your turnover is increasing but you are unsure whether profitability is improving.
• You do not know which products, services, customers or projects make the strongest contribution.
• Reports from Xero are available, but you do not fully trust or understand them.
• Recruitment, pricing and investment decisions are being made mainly on instinct.
• Different people are working from different versions of the numbers.
• You want clearer information for directors, lenders or other stakeholders.

What will you receive?

You will receive more than a standard set of reports.

We will draw your attention to the information that matters, explain changes in plain English and help you understand the questions raised by the figures.

That might include:

• Why profit has changed despite an increase in sales.
• Whether margins are being maintained.
• Why cash is moving differently from reported profit.
• Whether overheads are growing faster than the business.
• Which activities are producing the strongest return.
• Whether actual performance remains consistent with your plans.

The aim is to give you information you can use, not another report to file away.

What decisions can Financial Reports support?

Reliable and timely reporting can help you make more informed decisions about:

• Recruitment and team capacity.
• Pricing and margins.
• Business expenditure.
• Investment in equipment, premises or systems.
• Cash management.
• Targets and budgets.
• Funding requirements.
• Underperforming products, services or areas of the business.

Financial Reports do not make the decision for you. They give you a stronger basis on which to make it.

How often are reports prepared?

Most businesses choose monthly reporting because it allows problems and opportunities to be identified promptly. Quarterly reporting may be suitable where the business is less complex or does not need the same level of regular oversight.

We will agree the frequency and reporting timetable with you. The records must be accurate and up to date before meaningful reports can be produced.

How is this different from Strategic Planning and Insights?

Financial Reports concentrate on where the business stands now and how it has performed.

Strategic Planning and Insights use that information to look ahead through budgets, forecasts, targets and different scenarios.

Good planning starts with reliable information, which is why the two services often work together.

How is this different from an outsourced finance department?

Financial Reports are one part of a finance function.

Our Outsourced Finance and Virtual FD service can take responsibility for a much broader range of work, from day-to-day bookkeeping and payroll through to reporting, cash management and senior financial support.

Related guidance

• What's the difference between management accounts and year-end accounts?
• How often should I look at management accounts?
• Can you prepare management accounts?
• Can you help improve my profitability?
• What are management accounts?
• What financial reports should a growing business review every month?
• Why is profit different from cash?