40. Three Key Elements To Having Awesome Financial Reports

SUMMARY

Three Key Elements To Having Awesome Financial Reports

Financial reports are not a necessary evil. They can be helpful in making decisions to grow your business. To get the most out of your financial reports, you need to have the right balance of three elements.

Transcription

Three Key Elements To Having Awesome Financial Reports

- Okay, let's talk about having the best financial reports, and what do you need to do to have the best financial reports for your organization to help it get the best financial performance that it needs. For your financial reports you need three things. All these three things are interrelated and it is gonna cause some trade off in between those to get the best financial reports for your organizations. Every organization's going to be different depending on the personnel, depending on the resources that you have.

1. Accurate

Firstly, you want accurate. You want it to be accurate enough that you can make decisions but not so accurate where it's very time consuming or very costly to get the reports done. If you don't have many resources in your financial department, your level of accuracy is going to be different than those that have a very big finance department.

2. Relevant

Secondly, it's gotta be relevant. The reports have gotta be put in a way that is relevant to the person who is reading the reports and making the decision. An income statement that is three or four pages long and being handed to someone who's a non-financial manager, it may not be relevant and not going to be useful to them. Putting the reports in a way that is relevant but then is also accurate.

3. Timely

Lastly, let's talk about timely. Making sure the reports are given to the managers or to whoever's reading them in a timely manner. Not waiting too long, where everyone's worrying about it could be completely accurate and it's taking months to actually get it, but also on the other side where it's too short where the finance department are working on really tight deadlines and they're losing accuracy because of that.

Remember if you want to have the best financial reports work out the trade offs and where you wanna be with remaining accurate, being relevant and being timely. Thank you.

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