The financial report and transaction process gives an accurate picture of a business’s cash balance, inflows and outflows, which are important to businesses of all sizes. It assists in identifying trends, opportunities and risks to exploit or mitigate. It can be used to fulfill the requirements of law and regulations. For example an electric utility might need to report their financials to a government agency or a lender, if they are a publicly traded company.
Financial reports are an opportunity for companies to share information about their current financial situation. They provide employees with important information which can boost productivity and eliminate errors. They also help management make informed choices to meet the financial goals of the organization.
In order to make effective reports, it is essential that a company’s processes and processes are in sync with the company’s internal policies. The implementation of these systems will not only enhance the quality of reports but can also speed up the processing of data. This could reduce the processing time of invoices and even later financial reporting activities like ad-hoc analysis or budget balancing.
To ensure that each transaction can be easily identified, a thorough description should be provided with each record. This will help differentiate a specific transaction from others in the general ledger and Finance Mart reports. The description should be brief and include the reason an entry was booked, including any calculations if relevant. Other elements that should be included in every record are a posting date as well as a chartfield and the type of transaction.