Financial reporting is a legal requirement in several countries and are standard practices that accurately depict a company’s finances as formal records to stakeholders. Financial reporting includes profits, capital, revenues, expenses, and cash flow, and gives in-depth insight into the company’s financial information.
Companies often use outsourced financial management services for their financial reporting and analysis as the data and information is used by owners, investors, managers, employees, and even the Government when making decisions about the company.
There are different standards in financial reporting. The General Data Protection Regulation or GDPR is a privacy and security law that was drafted and passed by the European Union (EU). However, it imposes obligations on organisations anywhere if they target or collect data related to people in the EU.
The International Financial Reporting Standards or IFRS address the challenges of applying national accounting standards when several companies rely on cross-border transactions. It provides a high quality and internationally recognised set of accounting standards and the IFRS is required in over 140 jurisdictions and permitted in many more.
Generally Accepted Accounting Principles or GAAP is a set of principles, standards, and procedures issued by the Financial Accounting Standards Board of the United States of America. Public companies in the United States are required to follow GAAP when preparing financial reports.
Financial and accounting services and statutory reporting services study these standards closely and follow all relevant standards when preparing financial reporting and analysis.
One of the main reasons why companies are willing to outsource their financial reporting and analysis to financial statement services is because financial reporting and analysis is extremely important to a business.
Financial reporting is required by law for tax purposes, but also depict to stakeholders the financial integrity and creditworthiness of your company. Financial reporting and analysis also provides the business or reliable financial business partner with the information required to make crucial decisions.
Benefits
There are several benefits to financial reporting and analysis, which is why they are a top financial management service sought by companies in addition to a reliable financial business partner and company secretarial services UK.
Financial reporting lets a company keep track of its current assets, liabilities, and liquidity. This information can be used by a company to manage their debts, which can be greatly beneficial to the company. The ways in which financial reporting and analysis can improve debt management is one of the reasons why companies opt for financial reporting services and statutory reporting services.
As important as debt management is, so is managing a company’s liabilities, which include credit lines, business loans, and credit extended from vendors. Financial reporting and analysis will give you a better idea of your liabilities and how you can better manage them if, for instance, your business plans on expanding in the near future.
When making critical decisions where you must consider your liabilities, it is best to consult a reliable financial business partner or an accountant. These professionals offer more than bookkeeping and company secretarial services and a trusted business advisor will use your financial reporting and analysis to detail what is best for your company at a given time.
Trend identification is another benefit of financial reporting and analysis and finance and accounting services will help companies identify trends that can lead to improvements within the business. This applies to any kind of financial activity you wish to track, which can be done real-time.
Real-time insights allow a company to make swift decisions that are informed and accurate. This benefit to financial reporting and analysis reduces the number of barriers that the company faces during its operations and an accountant in Ilford or reliable financial business partner can further help in this regard.
One other benefit of financial reporting to consider is how the information and data gathered can help in progress and compliance. A business that plans to remain active and expand over time must comply with regulations and take the necessary steps for progress. Financial reporting gives companies the necessary insights for this and a trusted business advisor may make use of the analysis done through statutory reporting services to make suggestions on the measures necessary for expansion and progress.
Given these benefits to financial reporting, there is no doubt that you will opt for outsourcing your finances to company secretarial services UK, where you can access several services like bookkeeping, statutory reporting services, and even hire an accountant or trusted business advisor.