A financial report is a detailed snapshot of your company’s finances over a specific period (typically a quarter or year) and combines important data from the balance sheet, income statement, and cash flow statements. It’s used by investors, management, and regulators to gauge your company’s health and performance.
The term “net revenues” refers to the money a company expects to receive after deductions for returns and allowances. This number is calculated by subtracting these deductions from gross sales, which also reflects the cost of goods sold to customers. Net sales can then be used to calculate profit margins, compare business growth to budgets, and determine whether the company is making or losing money.
Creating and analyzing financial reports is a key part of every business’s operation, as it provides insight into your company’s current and past financial state. This is especially important because it’s an official document that banks and potential investors will use to evaluate your business.
However, the process of creating these reports can be a complex task. Manual data entry, disorganized systems, and rigid external deadlines can make the process time-consuming and challenging. Fortunately, there are solutions that help streamline the financial reporting process, turning it into a collaborative team effort rather than an internal headache. One such solution is Fyle, which provides templated and automated financial reporting using real-time credit card feeds. Employees can submit receipts instantly by replying to a text message, and the software will automatically match them to the relevant transaction.