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Financial Reports

Businesses need financial data and information to understand the present state of operations and to predict future opportunities. Financial reports help owners and management to focus on important aspects of financial data. More so, financial reports help the organization stay focused on its business operations. And ensure their goals and objectives are being achieved as planned. Financial statements and reports provide crucial business information and data for projecting long-term stability and growth.
Financial reports are a visual representation of the true and fair view of the organization’s financial position at any point in time. Organizations prepare various reports and statements on a weekly, monthly, and yearly basis to have access to meaningful information.

Financial reports and statements help organizations in:

  • Tracking revenue and expenses
  • Identifying assets and liabilities
  • Planning budgets and forecasts
  • Improving product and operation efficiency

Formulating strategies and policies for business growth organizations are required to prepare financial statements and reports annually for tax planning and to comply with statutory requirements. However, many organizations increase the frequency of preparing these statements regularly so that they are well prepared for any situation, especially when the market situation is very dynamic. Preparing financial reports every month helps organizations to compare their own performance over various periods and gives a quick view into their financial health.

Some important statements that are prepared by organizations every month and how they help them to make strategic decisions for business growth:

Balance Sheet:

This statement throws light on the assets owned by the organization and the liabilities that need to be paid off. The information in the balance sheet is valuable when different periods are grouped together in order to study a trend. Such regular comparison helps the organization to find out its financial position over the years. It also helps the organization to compare its performance with respect to its competitors. Organizations also used the balance sheet data for ratio analysis to make decisions regarding liquidity, profitability, solvency, and operational efficiency.

Balance Sheet

Profit & Loss Account:

The profit and loss account records all income and expenses and provides the organization with the net profit or net loss figure. This information is very important for an organization to evaluate its operational efficiency and make future performance-related forecasts. This statement provides organizations with the actual sales figures and the expenses incurred. Using this information, the company can focus on reducing or eliminating expenses and increasing sales by value addition. If this information is available to the management on a monthly basis, they can take up measures to help the organization increase its bottom-line.

Cash Flow Statement:

Cash is the backbone of any organization. And cash flow provides a comprehensive view of the liquidity position of the organization. Using the net profit and considering all operating, financing, and investing activities. This statement arrives at the cash in hand position. This statement provides the organization with a holistic view of the areas that it is currently receiving and using its funds. Such information helps the organization to devise efficient collection techniques and be watchful in its spending. It provides insightful financial information that helps organizations to manage their funds most appropriately, ensuring their survival and growth in the long run.

Cash Flow Statement

Bank Reconciliation:

Organizations prepared this statement every month to identify the differences between the actual bank statement and the organization’s accounting records. This statement is very important to identify errors in accounting and identify any potential frauds. And safeguarding the organization from any financial and reputational losses.

Budget Report:

Most organizations usually prepare a budget annually. However, a monthly budget report helps the organization to understand its present position and how well they are performing to attain the annual budget position. Preparing a monthly budget report helps the organization in attaining financial stability. It helps in quick tracking of expenses and trimming them in order to avoid overspending. It prepares organizations for slump and peak seasons by maximizing revenue and supporting strong financial health. Since budgets are a very important tool that helps in optimum resource allocation, organizations can manage funds wisely and be fully prepared for real-life situations in the future.

Budget Report

Debtors Ageing Analysis:

Most of the organizations prepare this report on a monthly basis to calculate the total amount payable by the customers. This report enables the organizations to identify the customers who owe the company for varied durations like 30-60 days, 60-120 days, 120-180 days, and above 180 days. It helps organizations to identify any bad or doubtful debts. And any underlying issues with the customers who consistently make late payments. Using this important monthly report, the organization can evaluate its payment terms with customers. They can reduce the risks of bad debts by devising better collection techniques that ensure a regular flow of funds.

Expense Report:

A monthly expense report is the best way for any organization to keep a track of all its expenses. Expense ledger reconciliation ensures that all expenses and reimbursements are genuine and accounted for in their correct accounting heads. This report is of vital use during tax planning and can help the organization save a huge deal. An accurate expense report is very useful for budgeting and expense management. Organisation uses this report not only to track expenses but also to control cost, ensure timely reimbursements, and comply with all statutory obligations in a timely manner.

Expense Report


It is very important for organizations to streamline their financial function. So, all the important reports are generated on time for strategic decision-making. Though organizations would benefit by using these reports. Not all organizations have the time or the expertise to generate these reports frequently. Even if organizations have the system to generate these reports monthly, they may lack presentation skills. Which would not highlight the problem areas to the management, leading to a waste of time and effort.
This is where you need us…

If you are someone who faces these issues with your financial statements and reports, then outsourcing them to a financial service provider could be the best solution. Diligen provides organizations with a wide range of accounting and reporting solutions. The highly professional team at Diligen provides clients with various reports that focus on areas of improvement and the pain points. Diligen also specializes in providing its clients with advisory services, including planning important strategies and creating a road map for the organization based on current financial performance for future growth. At Diligen, we believe that a financial report is not just any ordinary document but a very important information-providing tool that can be used strategically for the benefit of the organization and its stakeholders.

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