Business Reports: Why are they important?
There are many advantages to working with business reports, it’s an all-around positive idea to do, even if they do give you a slight headache at times.
If you’re like 99% of the population, when you hear the word ‘report’, you probably cringe a little. But it’s proven that reports save businesses every day, so why is there such a stigma around them? Probably because whenever that word is mentioned all eyes are on you to produce them. Well, let’s explain why reporting is so vital to a business, and why you should stop hiding behind your desk and start producing them.
Let’s start by stripping it back, what exactly is a business report? Business reports are documents that reflect the conditions of a company or individual from a financial point of view. They offer a detailed vision of the economic performance of a business, in addition to its financial strength and viability.
Often, you’ll see them referred to as risk, credit, or commercial risk reports, however, all terminologies refer to the same concept, and it‘s proven that this concept is a great help when making financial decisions within a company.
Let’s take a look at some reasons why you should produce company reports.
Reasons why you should pull company reports
Do you still need convincing that pulling business reports is something that you should take seriously and that they should be used as a tool to further improve your business? Let’s take a look at some compelling reasons that will clarify the need for this concept;
To visualise the organisational hierarchy of your company. Do you know exactly who is responsible for your company, who are the founders, shareholders, and executive management? This type of data is usually included in a report and is vital if you need to know who is behind a particular company, and what ties you have with other businesses and professionals.
Know the financial information of a company. Business reports of businesses will offer you a realistic view of the balance of your business, its activities, and performance.
Weigh up the viability of a business relationship. Are you in the midst of deciding on a new supplier, customer, or partner? The best way to narrow them down is by requesting a business report that will help you to know them better, and thus determining the possibility of your relationship, and how profitable it’s likely to be.
Discover business ratios. If you’re much more interested in the evolution of sales within an organisation and being able to compare that with other possible competitors, then you will find this type of information in a corresponding report. You’ll be able to see an insight into the levels of income and expenses of a company, which is something that you should analyse before establishing a new business relationship.
Highlight industry trends within your sector. Requested commercial reports will offer you an overview of their sector and will help you detect trends that you can take advantage of in your own business.
Remember, if you’re considering a new agreement, if you’re planning to open relationships with new customers, or if you want to grab the attention of new suppliers. The best thing you can do from a business point of view is to request reports as soon as possible.
Being a small business, you must consider that getting caught up in your own manual reporting processes will have a negative impact on your productivity and costs.
Here’s a solution for financial business reports
A cash flow management software.
The best cash flow management model is one that doesn’t drain your time and effort. Most tools connect your bank accounts and automatically monitor your cash flow statements, categorise your incoming and outgoing payments, monitor your budget and account balances, and reconcile your paid and committed transactions.
Try using a free cash flow management tool such as Airbank. Airbank is a unified financial management solution that marries your bank statements to generate your cash flow statements automatically. That way you don’t have to go through the messy process of waiting for your accounting statements, or transferring and categorising all your transactions yourself.
Airbank allows you to connect your bank accounts, which auto-categorises all your historic transactions. In addition, you can also initiate new payments and have them categorised for your cash flow statements from the get-go as well. Airbank then produces your direct cash flow statement for you in real-time and even lets you input your cash flow forecast numbers in the spreadsheet based on your planned billings.