Writing Financial Reports: How To

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Writing Financial Reports: How To

coursedetailsWhat is a Financial Report?

A financial report is a document that provides information about the financial health and financial condition of an organisation or company. It includes a balance sheet as well as an income statement. Boards of directors, investors and financial analysts often review and analyse financial reports. Reports should be prepared quickly and distributed in a clear and accurate manner. Even though it may seem difficult to create a financial report, it isn’t that hard.

Financial reporting helps your business get a clear and comprehensive view of where it is at and where you want to go. Financial dashboards are a quick and easy way for your company to understand and measure key financial indicators over a specified time period.

The financial report is an important event that records the successes, failures, and general trends of the past year. You can easily customise the report to reflect your business culture and audience. Some reports are straightforward while others include custom design elements and creative designs. The financials are an important element of every report. They show the real earnings and vital signs for the entire year.

Superior writing skills combined with exceptional business acumen are required to produce outstanding financial reports.

istockphoto xFinancial Reports are a great benefit

A financial report has many benefits, depending on your organisation’s needs. It doesn’t matter what your organisation needs are, it is important to establish the larger purpose of your financial report. This is not just a fact sheet. If you treat it like that, it will be chaotic and overwhelming. A plan and an end goal help to keep the report focused and effective.

Transparency in finances is key to building trust and showing appreciation for current donors.

How to write finance reports

A financial report is a detailed paper that contains information about income and cash flows as well as a balance sheet. Directors, business managers, investors and analysts analyse such reports. Although it may seem difficult to write a financial report, it is not.

This step-by-step guide will show you how to prepare your financial report.

Step 1.  Summary

You should provide a summary of your company and the industry it serves. Also, discuss important events in the past year. Highlights include milestones reached by employees, management or the entire company.

Step 2. Plans

The CEO or owner should write this letter in a professional, but friendly tone. Begin by thanking patrons and employees for their support of the business. Discuss your plans for implementing initiatives to improve your business’s situation, whether it is recent or in the midst. This will restore trust in your brand and help customers as well as employees to believe in you.

Step 3. Financial Reports

Include these items in your financial report

  • Balance Sheet: A balance sheet consists of assets, liabilities and owner’s equity. To make the balance sheet work, the sum of assets and liabilities must equal owner’s equity.
  • Income Statement: Also called the Profit-Loss statement, your income statement shows your year’s net profit.
  • Formula: Gross profit or total sales -Cost Of Goods Sold (i.e. Inventory, materials, supplies and taxes) -Total operating expenses (items such as utilities, taxes and fees) =Net profit before taxes -Income taxes =Net Operating income +Retained earnings (beginning of the year) =Retained earnings (end of the year)
  • Statement on Cash Flow:
  • Formula: =Ending cash balance

Step 4. You will need to reveal any information regarding key positions and individuals that were removed from the management hierarchy.

Step 5. Footnotes: To clarify financial components that might need explanation, make sure you include footnotes in the annual finance report.

Once the report has been written, formatted and designed for digital and print use, editing is a tedious task. Begin with financial report editing. Double-check every figure against finalised reports to make sure that it is correct.

Finalise the text and run the numbers through again to ensure accuracy. For approval of all financial claims, send the final draft to your accounting department. Send it to the CEO, as well as any other review sources for final modifications to the text or graphics. Save the final draft after it has been thoroughly reviewed and ready it for presentation.

Financial statements can provide valuable information about a company but they have their limitations. Investors can draw many different conclusions from financial statements.


Let’s face facts: Your supporters want to know where their money is going. Trust is built when your supporters can trust you and your organisation’s expenses. Finance reports are not just a collection of data that accountants only find useful. You can use them as educational and marketing tools to your company’s advantage.

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