A Financial Report is a balance sheet that contains details about the profit or loss your business is doing at the moment. The financial report can be prepared for any number of years or it can be prepared based on the current year. That depends on the company or business for which the financial report is being prepared.
The report is a must for any company or business. When you want clients or investors to provide business for your company, then you will need to impress them with your financial report. In this article we will be discussing the kinds of people who need a financial report. You will also find out why they require this report.
The many categories of people who require this report are managers. When you are an owner of a business or company, then it is important that you know the current financial condition of your business. Without the report, you will not be able to find out whether your company is making a profit or loss.
When you are not able to know that, then how will you take further decisions? You will not be able to decide on the future of your company. If you have employed somebody to run the business, then that person will need to know the financial condition of your business so that they can take decisions and respond to queries from clients and investors.
Here is a good looking Annual Financial Report Template created using MS Word,
So, when you are an owner of a business, then make sure you get your financial report done regularly.
When somebody has invested money in your business, then they would want to know the financial condition of your company. Based on that, they will decide whether or not to invest in your firm. This is why your reports have to be updated when ever you can and that latest information should be available for them to decide on further action.
Money lenders who have invested their money in your firm or business need to know if it is in good financial health. Only when they are shown the financial report, they come to know that your company is doing well. This will enable them to take further decisions on lending money to you in future.
They will want their money back in interest, which is the first reason they lend you the money.
Your staff needs to know the financial report of your company. They need to know the condition of your business. As they are working in your firm, they need to be assured that they are working for a profit making business. The benefits and other prospects depend on how well your company is running.
No employee would like to work for a company that is running in losses.
Your suppliers would surely want to see your financial report. The suppliers might have taken loans for their investors and they need to show them that you, being their client or having a strong financial condition and can repay the loan.
As you can see, a financial report is required by many people who cannot progress without it.