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
Volume of Issues of Central and State Government Securities The growth of government securities market in India and the investor response to the government bond issues can be k

Q. Short terms working capital? 1) Indigenous bankers: private money leased and other country banking used to be the only source of finance prior to the establishment of the

This case provides the opportunity to match financing alternatives with the needs of different companies. It allows the reader to demonstrate a familiarity with different types of

The Walter's model, thus relates the question of distributing the dividends and retaining the earnings to the investment opportunities that are available with the firm. (i) If a

Ask queswtion #Minimum 100 words accepted# what are the characteristics of debt finance? What are the similarities and differences between debt finance and ordinary share capital

Q. Evaluate of Risk-Adjusted Discount Rate? Illustration: - From the following date state which project is preferable: Year Project A Proj

Calculation of Weighted Average Cost of Capital The calculation of weighted cost of capital involves the following steps: (i) Calculate the cost of each source of funds.

Forward Contracts: The origin of forward contracts is lost in history. Some authors suggest that, it was India where these contracts took birth, while some others suggest that

Identification the management risk: The first and most essential aspect of risk management is recognising what events may occur within a business.  It is only when all the poss

Determine the factors of financial risk by giving example W. T. L. Company's cost of long-term debt two years ago was 8 percent.  This 8 percent was found to represent a 4- per