Recorded on a special form every month, a financial report is basically a record of receipts and expenditures. When a financial report is created, total receipts are recorded and expenditures are itemized every month. As long as this is done, creating an annual report becomes easy as the fiscal year draws to a close. All businesses, regardless of where they are located prepare financial reports. For instance, you prepare financial report Singapore, US, etc. The primary purpose of creating a financial report is that it aids business owners in analyzing profit and loss and considered essential in obtaining finance.
Follow these steps to make a financial report:
1- Monthly expenditures should be separated into categories such as utilities like electricity, garbage, water and telephone, vehicle expenses would include fuel expenditure, repairs and maintenance, depreciation and leases, labor expenses would include, salaries, wages and bonuses, office supplies, insurance and materials.
2- There are different types of finance reports that can be made and a business needs to decide the one that will benefit it the most and can be created every month easily. There are software available these days that provide the formats for most financial reports.
3- The monthly expenditures should be added to the report in the appropriate category. You have the option of adding the category if it doesn’t already exist.
4- You should also make a category dedicated to annual expenses. The annual amounts should be placed after writing the name of the expense and then dividing it up by 12 for determining the average monthly expenditure.
5- Add the monthly expenditures together to obtain their total and enter them in the correct category.
6- The monthly receipts should also be entered and totaled. As a business owner, you have the choice of separating the cash sales from the accounts that make monthly payments. The total amount of income and sales should be placed in the correct columns on the financial report.
7- You can calculate your monthly profit by separating the total expenses from the income and cash sales of the month. When the fiscal year comes to an end, preparing a financial report for the year is now easy since you have a financial report for every month. With the final profit and loss statement, you can judge the success of the business and apply for finance accordingly.
These instructions are suitable for small businesses, but they can only be understood and performed by someone who has some accounting experience. Most businesses cannot afford to hire such professional on a full-time basis. In this case, they can choose to use professional accounting services. These services specialize in making financial reports and other related document and are aware of the format to be followed. The best part is that there are numerous such services available these days such as Koh Management, which are highly reliable and can provide impeccable financial reporting filing services to small, medium and large-scale businesses at a very reasonable and affordable cost.