Post by account_disabled on Feb 20, 2024 5:09:17 GMT -5
Frequently, when we talk about financial reporting we think of complex reports prepared by the corresponding (and busy) areas and departments of large business structures. And of course, in many cases this image corresponds to reality, but in many others (probably the majority), the scene is much simpler and closer to the reality of the business fabric. If we take into account that a financial report is a management tool, a business instrument and not a mere collection of data for purely statistical purposes, if we notice the unquestionable practical functionality of financial reporting it will not be difficult to understand that it is something integrated into the daily life of all types of companies, including and especially small and medium-sized companies.
Financial_reporting-1 Financial reporting in SMEs We have seen on previous occasions that the main objectives of financial reporting are, on the one hand, to offer a real and updated view of the company's financial status (performance of investments made, assets, billing, costs, profits...), and on the other hand , make short, medium and long-term forecasts that allow you to properly guide decision-making (preparation of budget items, forecasting new investments, analysis of financial USA Student Phone Number List opportunities and assessment of the real potential of the organization...). Obviously this is (and should be) applicable to all business organizations , regardless of their size and turnover; at the relevant scale, of course, but we often forget that in many SMEs these tasks are not carried out by departments specifically and exclusively dedicated to finance, but fall under the responsibility of executives who rarely have the resources and necessary knowledge to carry them out in the most optimal way, with the risks and loss of business opportunities that this represents.
This is not the first time that we have highlighted the importance of Business Intelligence for SMEs , and today we must remember this claim again. BI, and especially data analysis and information management tools, together with others of unquestionable centrality such as the Balanced Scorecard , offer SMEs the opportunity to facilitate, simplify and streamline tasks as complex as reporting. financial. Adapting the general principles of reporting to the needs and size of the company, the set of advantages that come with adequate financial control can be practically universally applied to all types of organizations. Every company must know the real state of its accounts , be able to detect leaks and losses before they become a critical obstacle for the organization, be permanently informed and in a position to be accountable for its investments or, among other matters, be prepared to give an adequate response, financially speaking, to the obstacles and opportunities that open up on the horizon. To delve deeper into these and other related issues, we recommend the guide 12 good practices in financial reporting , a downloadable resource available completely free in our ebooks section.