With the advancement of technology and the betterment of procedures everyday at the workplace, it comes as no surprise that all reporting systems in the office will also become better with time.
Despite the fact that most of us might have gone paperless, reports are still a crucial part of a business. No matter how boring and dry they might get, reports will play a huge role in ensuring that everyone has eyes on what’s happening to your business on a daily, weekly or even yearly basis. Without reports, you wouldn’t know if your company is doing good or bad. You would not be able to see what efforts are working and which ones should be axed.
We’ve established the fact that business reporting is important, but let’s get more into detail as to why they are so important to you and your growing business.
- The Ability To Make Well-Informed Business Decisions
When it comes to making decisions that pertain to your business, you need to be sure that you have all the information needed to make that decision. Data and analysis of that data has become a very crucial part of moving your business forward. A lot of this software can be in-built into your entire business system and it will allow you to find out what is happening in your entire ecosystem within a few clicks.
A business report allows the conveyance of information that will assist you in business decision making. For example, a business financial report at the end of the month will tell you how much your overhead cost is, are you in the green or the red? It will also tell you things like your profit and loss margins, where you’re losing the most money and also where you’re making money. You would want to ensure you work more on the ones that make you money instead. Having these reports will allow for better decision making.
- Having Your Reports Aligning WIth KPIs
When you create business reports, you should ensure that they are objectively aligned with the overall strategy of an organisation. Your Key Performance Indicators (KPIs) should be incorporated into every business report you make. This way you can always look back and look forward to see if your company is heading the right direction. These reports while aligned to your KPIs will also help in deciding corporate strategies on the go.
- Informing Stakeholders & Business Partners
Every company will always have more than one stakeholder or partner that will sooner or later want to see the information on the business. This is especially important when you want to get funding or investments for your business. A report will help inform them on the current status of your business. It also includes your financial status, your cash flow and your profit and loss statements.
This way, stakeholders and business partners can have a simple view on whatever is happening. You can show them your growth and its a better way to communicate progress. If you are a public company, you are also expected to report your finances at the end of the year or even quarterly for some countries.
- Adopting the Right Marketing Strategy
As mentioned above, a good business report can and will help you make the right business decisions. These decisions also include things like marketing campaigns and strategies. This helps because when you are trying to create campaigns, you need to know that you’re targeting the right people and that you are getting sufficient ROI (Return of Investments) for your campaigns. The only way you can see this is by linking your business reports to your marketing reports.
- Highlights the Current Business State
Business reports that are made, no matter when they are made will be able to show you and everyone in the company what is going on overall. They are good to highlight problems faced in the company. Making sure it is transparent is essential so that everyone can work towards improving the business. Numbers do not lie and a report like that cannot and should not be contested.
These are just a few of the main reasons why business reporting is crucial to the advancement and improvement of your company. Learn more about year end financial reporting with us here at Formis Training.