Financial reporting is basically a business’s financial report card and is crucial for businesses that want to make informed decisions.

Financial reporting does not provide information about an organization’s management or culture, but accurately depicts a company’s finances including their revenues, profits, capital, cash flow, and expenses.

Plus, it’s legally required for tax purposes.

Typically, financial reporting includes the income statement (sales and net income), the balance sheet (a snapshot of assets and liabilities), and the cash flow statement (an overview of cash flow from operating, investing, and financing activities).

Financial reporting analysis is the process of examining a company’s financial statements to gain comprehension of its overall financial health, and for decision-making purposes.

Analyzing financial reporting makes data input by bookkeepers more useful to managers, shareholders, and investors, as long as the data-entered was accurate.

Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. bookkeepers accurately maintain the books so that financial reporting can be used to precisely evaluate a company’s past, current, and projected financial performance.

The financial data input by bookkeepers translates directly into the financial reporting that identifies trends across numerous periods and different types of reports.

With our bookkeepers’ precision, our accountants and CFOs can then determine how profitable an organization is, how efficiently it operates, its cash flow, and its liquidity.

Bookkeepers make all the difference.

If the bookkeeper does not input data correctly to begin with, then financial reporting will be unavoidably inaccurate and any reports based on them, including management and tax reports, will be erroneous.

The government requires accurate reporting on which to collect taxes.

We’ve met many business owners whose incorrect financial reporting have gotten them into trouble, usually because of inaccurate bookkeeping and insecure or ineffective accounting data management systems.

For example, one company was using a massive spreadsheet that numerous users could access and edit. Obviously, they ran into problems with incorrect data entered by many undocumented users. Consequently, they produced erroneous financial, management, and tax reporting with little-to-no staff accountability.

To remedy this, One Source Services, Inc. dba Sherman Oaks Accounting & Bookkeeping set up the client’s books in QuickBooks Online.

QuickBooks Online created a secure, cloud-based financial dashboard with individual user credentials and permissions for accountability and security.

QuickBooks Online also provided our client with financial information at-a-glance from anywhere they could connect to the Internet.

If your business makes and spends money, then financial reporting must be part of your regular accounting procedures.

Although you cannot choose whether or not you conduct financial reporting, you can choose how you do it.

Sherman Oaks Accounting & Bookkeeping powered by One Source Services, Inc. and our financial reporting tools provide clients with instant snapshots of their companies’ financial integrity anytime from almost anywhere.

Contact us today to onboard your business!