Accurate company reporting is critical if you want your business to thrive and grow.
From helping you steer the ship in the right direction to allowing you to demonstrate complete financial transparency for investors and the taxman, the importance of accurate company reporting cannot be underestimated.
Here are five reasons accurate company reporting is vital:
Comprehensive financial overview
Most business owners will know how much their company makes each month and possess a rough idea of their assets.
However, the value of those assets will shift over time and other numbers beyond basic profit need to be taken into account. Think about profit before tax, after tax, and after interest as a few examples.
Only keeping abreast of the broad strokes isn’t good enough. Instead, you need to be able to accurately call up any of these numbers or values as they are at the present moment – not as they were two months ago.
Keep current with taxes
Tax rates can be quite high for businesses operating in the UK, and many companies fail to adequately prepare themselves for their annual bill to the taxman.
Being left gobsmacked at how much you owe compared to how much you’ve set aside can be horrific, especially if you know you’ll have trouble putting the required sum together.
Accurate company reporting gives businesses a firm handle on their current financial operations, allowing for a clear outlook when it comes to taxes.
Catch mistakes early
Accurate company reporting allows you to catch any mistakes while they’re still in their infancy.
Errors can be as simple as adding one too many zeros to a spreadsheet, but even the most minor slip-up can have far-reaching consequences.
Additionally, you’ll be able to catch any illegal activities that may be taking place. If someone has been committing misdeeds, they’ll put your business in serious jeopardy unless detected as quickly as possible.
Establish reliability and professionalism
Imagine you’re trying to attract investment or put together a long-term partnership with another company. They’ll want to make sure you’re trustworthy, professional and operating with strong profits.
Demonstrating that kind of status is close to impossible without accurate company reporting. If you want to be taken seriously, you have to act seriously.
Optimised forecasting and planning
Whether you sell peanut butter or develop security software, your company should be looking to the future.
Projections, forecasts and ongoing sales and development strategies are necessary to develop further, but you need to have a strong understanding of your current situation in order to work towards the future.
Analysing financial statements is absolutely necessary if you want to be aware of the costs you’re carrying, the assets you hold and the income you generate each month.
Only with a full awareness of these factors will you be able to productively plan and advance.
Accurate company reporting: vital for successful businesses
If you want your business to thrive and grow, accurate company reporting is essential.
If you’d like help with your company reporting or would like to discuss the topic in more detail, please do get in touch with us – we’d love to help.