A financial report is an official document that showcases all the significant financial activities and performances within your business over a given period. This is a vital tool for your company to stay on top of its numbers, organize data and evaluate strategic decision-making. It’s also a key requirement for outsiders like banks, investors and potential partners to assess your business’s stability and viability.
Whether you need to create monthly insights or a yearly overview, these reports provide a comprehensive snapshot of your company’s current state. Venngage offers a wide variety of ready-to-use financial report templates that simplify data presentation and facilitate effective communication. Here’s a look at what these different reports contain:
Income Statement: Also known as a Profit and Loss statement, this report shows you how much revenue your business earned and the net profit that resulted from all operations during the reporting period. This is an important tool for evaluating performance, identifying trends and pinpointing inefficient areas.
Balance Sheet: This document outlines your business’s assets, liabilities and shareholders’ equity to offer a complete picture of your company’s financial health. Investors scrutinize this information to determine your ability to meet your expenses and debt obligations, while lenders examine it for creditworthiness before approving loans.
Cash Flow Statement: This report tracks cash inflows from sales and investments as well as outflows for expenses and other financial commitments. It’s essential for assessing your business’s profitability and operational efficiency, as it highlights your reliance on external financing and whether you have enough liquidity to meet future expenses.