What Is Financial Report Writing?

While students learn and try to acquire their diplomas, they face a lot of challenges. Most of them are writing various academic projects. One of them is a financial report. This piece of writing is very complex and may become a serious challenge for any student.

A financial report is a specific piece of writing, which uses financial documents about the financial health of a certain firm or organization during a certain period of time. It should describe, analyze and explain such points as income, cash flows, management, marketing strategy, and something of the kind. In other words, it unites all the influencers that affect the financial growth of a certain company.

This task is quite complicated, and many youngsters even use the professional help of a finance essay writing service e.g. AdvancedWriters. It is a clever solution, but we recommend trying to finish this task yourself. Our guide is full of smart tips that will help you to enjoy success.

The Importance of a Financial Report

It is necessary to clarify more details about the importance of a financial report. It serves vital purposes to show how much was earned and spent by a certain organization or firm. It helps to:

• Highlight the main achievements and expectations of a firm during a certain period of time.
• Define the financial position of the firm.
• Introduce the most important members of the process to others.
• Define the firm’s strategy for development and growth.
• Take the most effective decisions.

Choose the Timeframe

As we have just mentioned above, a financial report is unique writing that focuses on the financial health of a certain firm or organization during a certain period of time. Accordingly, your first task is to decide on that timeframe.

To define the right period of time, you need to check the governing documents of the firm or organization you write about. Use the next documents:

• Bylaws;
• Corporate charter;
• Articles of incorporation.

In case you are already a worker of the firm, ask an executive about the frequency of financial reports. In case you are the executive yourself, decide what date will be more helpful to see the picture big on your own. It may be 2 weeks, 1 month, or longer.

Review the Ledgers

The second step is to check your ledges. You should be 100% sure that everything is up-to-date and reordered properly. To be more specific, you are supposed to check the next essentials:

• Are all accounts payable?
• Can be those accounts received?
• Is the band reconciliation complete?
• Are there any services that are not invoiced?
• Did you pay all the wages?
• Are all inventorying purchasing recorded?
• Are all the liabilities recorded correctly?

Give close heed to every detail because each may be crucial for the correct assessment of the financial record of your firm. You should collect any missing data and include it in the report.

Prepare the Balance Sheet

You should set up your balance sheet. This sheet highlights what does the firm owns and owes. In other words, it shows its assets and liabilities, as well as equity accounts. First of all, you should name the first page of your report as “Balance Sheet”. Afterward, mention the firm’s name and all its assets, and so on.

Be sure you format the balance sheet correctly. Assets should be reflected on the left side. Other details should appear on the right side.

Remark: Mind that your report should specify a certain date. For example, it may be the balance as of June 1.

Specify Your Assets

Commonly, every expert starts with the list of assets as it appears on the left side of the sheet. What do they include? Consider the possible options:

• Current assets. These are all the items and money that will be included within the selected timeframe – several weeks, months, or the entire year.
• Non-current-assets. These are assets that do not come in the form of cash and that will not be converted in the nearest future.
• Total assets. This is the sum of the current and noncurrent assets.

Specify Your Liabilities

Next comes the list of the firm’s liabilities. It includes the liabilities, as well as equity accounts. Start with current liabilities. These may be payable accounts, accrued liabilities, and any other loan payments. Then come long-term liabilities. They do not suit one year but can be paid fully in 2 or more years. Make sure you mention the total sum of all liabilities.

The equity sources are the last on the balance sheet. Its main purpose is to show how much money the firm would have if it managed to sell all its assets and also managed to pay off all its debts (liabilities). Be sure to add up total liabilities and equity.

Afterward, check and double-check the sheet to be sure everything is in order. You should prepare the income statement. It reflects how much money was earned and spent by the firm. Be sure to add:

• Sources of revenue;
• Money earned from selling goods or services;
• Operating expenses;
• Retained earnings.

Use a Compelling Design

A financial report is a very complicated paper, which may be hard to read and comprehend. That is why you should make it as readable as possible. You can do that by applying various visual elements. These are as follows:

• Add various headings and subheadings.
• Find space for infographics, slides, and other vital visual elements.
• Make it concise, logical, and simple.
• Use bold and various colors to outline the most important details in your report.
• Use quotes and captions if necessary.

Summing Up

A financial report is a very complicated piece of writing. You should take it seriously if you want to make everything correctly. You will require calculating, as well as writing skills. Pay attention to the slightest details and double-check all the sums. Be sure it is readable, make the necessary adjustments, and submit a flawless financial report!