Timing of financial reports, Financial Management

Timing of Financial Reports:

Just as the actual report requirements differ depending on the requirements of the stakeholder that will be using them, so too will the timing of the financial reports need to be tailored to the needs of the stakeholder.

Depending on the type of information contained in a report, and the peculiar needs of management, the regularity of preparation of financial reports can be anything from daily to yearly.

Reports prepared for management are generally more frequent than those prepared for external parties as the information is needed to ensure that quick and effective management decision making can occur.  If a particular area of the business is performing badly, or there is a potential cost blow-out in respect of a particular project, then management need to be made aware of that as quickly as possible. Waiting a year to discover the business is rapidly losing money is obviously too long.

In contrast, reports for third parties are generated at longer intervals with the main reports being produced at the end of each financial year.  Some of the exceptions amongst others include:

  • Quarterly or monthly ATO reporting of a Business Activity Statement (BAS)
  • Pay As You Go (PAYG) income tax reporting

Similarly, where an organisation operates a trust account, monthly reporting by way of a balanced cashbook and bank reconciliation is required along with an annual audit of all trust transactions at the end of the financial year.

The following is a non-exhaustive list outlining some examples of the type of reports that may be required by an organisation, and the timings that might apply to those reports:

Weekly Reports

  • Settled Sales (as $ amount)
  • Sales in Progress (and expected $ income)
  • New Managements (as $ amount)
  • Lease Renewals

Monthly Reports

  • Monthly Revenue Statement (divided into sales, property management etc)
  • Listing Report
  • Referrals report
  • Trust Account Reconciliation
  • Monthly Profit and Loss Statement
  • Variance Analysis (budgeted profit/loss v actual)
  • Tax Invoices
  • Business Activity Statement (BAS - if prepared monthly)

Quarterly Reports

  • Quarterly Profit and Loss Statement
  • Variance Analysis
  • Cash Flow Statement
  • Cash Flow Projection
  • BAS (if quarterly)
  • Pay As You Go (PAYG) income tax statement

Annual Reports

  • Annual Profit and Loss Statement
  • Balance Sheet
  • Cash Flow Statement
  • Strategic Planning Reports
  • Annual Tax Returns
  • Audit Reports (Trust Accounts)
  • Annual Budgets (Projections)
  • Budget Analysis Report (for previous year - budget v actual)
  • Industry Analysis Report
  • Projected Profit and Loss
Posted Date: 10/1/2012 4:02:45 AM | Location : United States







Related Discussions:- Timing of financial reports, Assignment Help, Ask Question on Timing of financial reports, Get Answer, Expert's Help, Timing of financial reports Discussions

Write discussion on Timing of financial reports
Your posts are moderated
Related Questions
Does the expected value of the sales and of the net income of Spanish companies have anything to do with sustainable growth? No. Sustainable growth it is just a number that sho

Issuer's Considerations Cash Flows: Issuers may consider the period for which the funds are required and try to spread the borrowings in a way to minimize the costs. Generally,

They are issued in the local market by a domestic borrower and are usually denominated in the local currency. For example, US companies issuing bonds to US reside

Capital cost of product a is ? 5 crores and initial capital cost of product b is ? 3 crores. Life of product a is 30 years and life of product b is 10 years . The difference in ini

What risks are associated with direct foreign investment? How do these risks differ from those encountered in domestic investment?

We have seen the valuation of bonds with embedded option using binomial model. This method can be used when cash flows do not depend on how interest rates evolve.


Why do total assets equal the sum of total liabilities and equity?Explain. Assets = Liabilities + Equity Assets are the entities of value a business owns. Liabilities ar

Explain how to compute the overall balance and discuss its significance. The overall BOP is defined by computing the cumulative balance of payments involving the current account,

define matching principle of working capital financing