How to make a financial report in just 4 steps

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Financial management is essential for the sustainability of a company. Without control, planning the use of resources becomes difficult and risky, influencing all sectors of the organization. In this context, monthly and annual financial reports are a great ally, as they facilitate the monitoring of the company's health.



How to make a financial report
A good report provides clarity about the company's financial reality . With it, you will identify where to apply resources or not, since this action implies generating profit. Therefore, a financial report is not just a document full of graphs and numbers, but rather a strategic tool.

The step by step is:

Set the analysis period
Consider the size of your company to define the period for lawyer database analysis. It can be monthly, quarterly, half-yearly or annually. Ideally, you should draw up a financial plan every 5 years and prepare reports every 6 months , monitoring the results month by month. This way, you can validate the strategy and make adjustments when necessary.



Search all data
Check the accuracy of your payment records before using the data contained therein. An inaccurate financial report is of little use and can lead to misleading decisions. Pay special attention to unrecorded accounts payable. To keep records up to date and documents organized, invest in a management system . This will reduce the time invested and reduce the chances of losing information.

Learn about the impacts of a management system on the day-to-day running of companies.

Create patterns and hierarchies for information
Since a financial report is a strategic and work tool, it needs to be easy to use. Don't just add the information that your department needs, in the format that it considers appropriate. Also add the data that other areas consider important. This way, everyone will be able to understand it and apply it strategically in their actions.

A good report is simple and straightforward, highlighting the key information. If any data is used frequently, it needs to be noticeable at first glance.

Reduce the chances of failure
When a monthly or annual financial report presents incorrect information, it puts all of the company's operations at risk. That's why it's essential to abandon spreadsheets and notebooks and invest in management systems that, in addition to concentrating data, establish connections between them and the departments.



The report is ready. Now what?
With the financial report in hand, decision makers will have a useful tool to manage budgets and plan actions . Monitoring the flow allows you to cut expenses and provides room for expansion. Therefore, the possibility of investing more depends directly on data analysis.

If any negative results appear, the report allows you to quickly identify what happened and how to resolve the situation. In a competitive economy, management that identifies and resolves problems quickly has a positive impact on the company's results.