CFO’s, Controllers, and Managers have a ton on their plate. Managing departments, leaders, and an organization is a challenge in and of itself. Not to mention major financial decisions rest on their shoulders. The only way for them to make good decisions is to have visibility into good data, meaningful data. Most organizations have data overload. There’s data in different systems, different departments, and little insight into all of the data. In order for financial reporting to be truly meaningful, it not only must lay out information for the finance executives, but also for managers in sales, operations, and other team leaders. This is the only way to ensure the entire team is in the same boat, rowing in the same direction. Businesses can’t rely on just financial reporting. The reporting must be meaningful and deliver data that is easy to read, understand, and allows decisions makers the ability to improve the performance and profitability of their business units.
First off, make sure you are employing a dynamic financial reporting tool that integrates to your Enterprise Resource Planning system, Excel, and any other systems where you house data. The tool should automate all of your data reporting and provide the story behind your numbers. Think about the story for the major drivers in your organization which impacted financial results at different stages, and not just the end result in the form of totals. You’ll need the ability to include qualitative data in addition to the quantitative information. See The Nuts & Bolts Of Dynamic Financial Reporting Software.
The dashboard in your car summarizes the most important information you need to know, even though there are thousands of other tidbits of data you could consider. Your financial reporting should do the same. It should highlight important metrics that describe the business performance and then provide you the means by which to drill down to see the details. See Financial Reporting KPIs To Drive Your Organization’s Stability & Success.
You cannot afford to leave budgeting out of your financial reporting. Budgeting should serve as your organization’s roadmap for achieving goals and objectives. It will also project, manage, and provide data insights into the financial health of your organization. You will want to be able to compare your budgeted numbers to what actually occurred in your business. See Budgeting Strategies To Ensure Your Organization’s Financial Health. Meaningful financial reporting is the key to making the best decisions for your company and ensuring you can navigate times of economic uncertainty.
