An Overview of Financial Reporting
Creating a successful business isn’t just about selling products or services. It’s also about making smart decisions based on your company’s data. Having the ability to look at the current and projected financial health of the business is vital if you want to scale or invest.
However, financial reporting often requires an expert eye with experience to compile the data effectively. Therefore, to gain a good overview of their business’s financials and decide what steps to take next, it is strongly advised businesses seek professional services from a financial reporting accountant.
If you’re wondering whether or not you need one for your business, here are some things to keep in mind.
What is financial reporting?
What is a financial reporting accountant?
What Role does a Accountant Play in Financial reporting?
- Properly compiling, maintaining, and classifying reports
- Tax reporting, inventory processing, and program administration
- Research accounting rules and regulations for making recommendations regarding company policy
- Public reporting of the business’s financial status
- Identifying trends and forecasting future requirements, and making recommendations based on this knowledge
- Compiling reports and presentations to business owners and other stakeholders to communicate results and financial information
What Types of Reports are managed by the Financial Reporting Accountant?
- Profit & Loss statement
- Cash Flows statement
- Balance sheet
What are the Benefits of Having a Financial Reporting Accountant on Your Team?
- Better debt management: A financial reporting accountant will give you direct insight into your business assets and liabilities. Through this insight, you can understand how you can better manage your debt.
- Make sound decisions: By analyzing the financial statements, your accountant will be able to make recommendations for important financial decisions.
- Compliance: Staying above the law and its regulations is vital for all businesses. Solid financial records and reporting will ensure you achieve this.
- Taxes made easier: Certain financial reports are required by law when you file your taxes. If you already have accurate records, it saves a lot of time and reduces the margin for error.
- Transparency: You will attract far more external investment opportunities if your financial records are clear and easily available.
Do the Reports Provide Advice on Investment Decisions?
Financial reports provide investors with some necessary insight in order to help them determine whether or not they will invest in your business. Public companies also have many pages of notes to their financial statements that will provide guidance on how the accounting was done. They give a more accurate and transparent account of the health of the business, and this is vital for building trust and reliability with would-be investors.
Ultimately, financial reports are necessary tools when seeking investment from outside parties.
Do Financial Reports Determine Business Valuation?
Do Financial Reports Predict Future Cash Flow?
How to Find the Best Financial Reporting Accountant for Your Business?
Most small to medium-sized businesses want the advantages provided by a financial reporting accountant without having to pay a full-time accredited business accountant salary. In fact, many businesses don’t have a requirement for a full-time accountant, nor do they have the office space.
However, there are some great solutions out there. Finvisor is the perfect option for businesses that need financial reporting services without paying the hefty regulatory reporting accountant salary.
Hiring a virtual financial reporting accountant allows you to get the data and reports you need as and when you need them. In short, you only pay for the work you require. As your business grows, you can increase the services you get from your accountant.
It’s a fantastic cost-effective solution that gives you access to experienced accountants and financial reporting as and when you need them.
What to Look for When Hiring a Financial Reporting Accountant?
- Try to find an accountant with experience or knowledge of your industry
- Always ask for solid examples of how they used their skills to make improvements.
- Ask to see their resume.
- Ask for examples of how they overcame obstacles and problems.
- Do you have a good rapport with them? Do you like how they organize their workload?
- How do they plan to share their reports and findings with you?
The answers to these questions will determine whether or not they are the right financial reporting accountant for you.
In conclusion, financial reporting is an essential part of running a successful business. It is especially vital if you’re looking to attract outside investment so you can grow your business further.
However, having the skills of a financial reporting accountant doesn’t need to come with a high price tag. Get in touch with Finvisor today and find out how we’re helping businesses across the US get access to the skills they need when they need them.
To learn more about what we do, or to request a quote, contact us at hello@finvisor.com or 415-416-6682. We’re here to help you navigate deferred revenue journal entries so you can make the most of your assets!
*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*
- Last Modified
- June 19, 2023
FOR ANY QUESTIONS
CONTACT US
- MAILING ADDRESS
Finvisor HQ
48 2nd St, 4th Floor
San Francisco, CA 94105
- PHONE NUMBER
- EMAIL ADDRESS
"*" indicates required fields
