Financial Reporting Services
Making the right decisions for your business is absolutely vital and can only be done if you have the correct information to hand. We specialise in making sure you have the correct financial information for your business whether this is on a quarterly, monthly or weekly basis. Below are some of the different financial reports we can provide for your business.
Management accounts is a set of accounting data summarising the financial performance of the business. These are designed to provide timely and key financial information to enable the management or owners of a company to make decisions. Our management accounts will usually consist of the below reports:
Profit and Loss
The profit and loss report (or Income Statement) shows how the business has traded in a set period. Here you will find the companies turnover, gross profit and net profit. Depending on your needs, there maybe a breakdown of different accounts. For example, if you sell different types of products, these may be broken down or you may want to measure your advertising costs, which may be broken down in the overheads. These can all be setup depending on your companies needs.
The balance sheet (or Statement of Financial Position) shows a summary of the companies financial balances. Here you will find how much assets the company owns, how much liabilities the company have and how much equity is in the company. The balance sheet is extremely useful as it can be broken down to show how much cash was in the bank, how much your customers owed you and how much you owe your suppliers.
The top priority in any business is cash! The cash flow shows where you have spent your money and how much you have spent compared to how much money has come in. This financial report can be a key indicator to show you where you are potentially losing money within the business. This report can be extended into a forecast to give further information.
Cash Flow Forecast
Leading on from the cash flow report, it is imperative to know your business is not going to run out of cash! Using the management accounting information, we can forecast your cash by looking at how much is owed to you and how much your need to pay to creditors. It could be that there is a hole in your cash in a few months, giving you the time to get a loan in place. Alternately you may have a surplus of cash allowing you to plan your next investment.
Many businesses will know how much they are expected to turnover next year or maybe in even 5 years! This is because they have an accurate budget in place. This is something we can prepare for you and then compare it alongside your management accounts to make sure you are staying on track.
Aged Debtors and Creditors
These reports quite simply show you a list of who owes you money and who you owe money to. It may sound very basic, but all too many times I have heard the phrase “It’s all up here”. When doing the test of what’s in the business owners head compared to a report, in almost every occasion there was at least one customer the owner had forgotten that owed them money. These reports will make you stay on top of those customers and increase your cash flow.