It’s no secret that we’re living in a time of significant economic upheaval. In light of the current volatility, with a probable recession just around the corner, it’s more important than ever that companies take steps to protect their financial futures, and that means utilizing data to its best advantage. Recognizing that organizations with access to and insights into the most data have the best chance of weathering the downturn, savvy business owners are taking steps to improve their financial reporting. Keep reading to learn about the most essential financial reports along with tips on automating your reporting so you can make crucial decisions with greater confidence that you’re doing what’s right.
Key Financial Reports to Run
Accurate, actionable data can mean the difference between your business falling on hard times or surviving the coming storm with ease. Here are some of the key financial reports to run if you want to give your company the best odds of achieving its goals:
Balance sheet: A crucial element for any business, the balance sheet offers insight into the company’s asset, liability, and equity accounts. As a result, owners can see what the company owes and owns in assets and investments at a given point in time.
Income statement: A business can’t operate or plan for the future if owners don’t know the current financial status. Your income statement should reveal revenue and expenses, as well as the net loss or income.
Cash flow statement: Cash is king in the business world, and you can’t achieve your goals if you don’t know how much money is flowing in and out of the organization. This report should provide information on operations and investments that rely on cash.
Shareholder’s equity statement: Another important report, the shareholder’s equity statement shows how the equity section of the balance sheet is changing over a given period.
The Importance of Automated Financial Reporting
Business owners and decision-makers know that generating reports takes up a great deal of time and energy. Fortunately, automating financial reporting can improve both speed and accuracy. By using the most up-to-date technology, FP&A software enables companies to access the information they need without having to input data manually. Not only does automation reduce the odds of errors and discrepancies, but it also allows for companies to share information with multiple individuals. As a result, decisions can be made faster and with greater efficacy.
Critical Reports to Automate
If you want your business to achieve its goals in the coming year, automating certain critical reporting is essential. One of the most essential reports, the balance sheet shows an organization’s assets and liabilities as well as shareholder equity at a glance. This information can be useful for creating other reports as well. For example, you can utilize the assets section of the balance sheet to generate a cash flow report and your shareholder’s equity statement. By automating the balance sheet, you make it easier for your company to access other reporting and make better decisions moving forward.
Avoiding Analysis Paralysis
Data is undoubtedly the most important tool you have when it comes to guaranteeing your company a bright future. And while it’s crucial to monitor your financial reports and performance, those with access to large amounts of data sometimes suffer from a condition called analysis paralysis. After all, information is only helpful if you use it to make thoughtful choices. While you might be tempted to analyze and reanalyze data or search for the details you want to see, ultimately this habit can be detrimental. For best results, you should set a time limit for reviewing reports and stick to it. The goal is to avoid getting lost in your data.
Financial Reporting Best Practices for Today’s Economy
In the current economic environment, it’s crucial to follow the financial reporting best practices. Between the ongoing effects of the COVID pandemic and new problems such as inflation and a war in Ukraine, many companies are dealing with reduced demand for goods and supply shortages that make it harder to do business. One of the best ways to mitigate these issues is to engage in better business planning. By anticipating complications before they come, you improve your odds of making the kinds of decisions that safeguard your interests and help you achieve your goals.
The good news is today’s companies aren’t on their own when it comes to business planning. Thanks to sophisticated financial planning and analysis tools like Planning Maestro, businesses can improve access to data, giving them the information they need to navigate what’s to come. Along with improved forecasting, Planning Maestro delivers superior financial reporting, enhanced performance, and easy collaboration. That means you don’t have to wait while information trickles down to various levels and departments. Contact Centage today to learn how Planning Maestro can be optimized for scale and performance.
Centage provides modern FP&A software solutions that empower Finance teams to lead the way to a stronger, more agile business. Our cloud platform, Planning Maestro, makes sophisticated budgeting, planning, and forecasting easy and accessible. Intuitive automation accelerates workflows and improves accuracy, enabling Finance leaders to deliver reliable information and meaningful insights at the speed of today’s business. For more information on how to modernize your FP&A process, view our product demonstration video, or call 800-366-5111.