Accurate financial reporting

Why good financial reporting is essential and the consequences of missing the mark.

The importance of accurate, ethical financial reporting can’t be underestimated.

Business Australia recently reiterated this fact in their article Accurate Financial Reporting: 12 Must-Dos, highlighting why good financial reporting is critical to your business for a range of important responsibilities including preparing accounts, evaluating tax liabilities, decision making, planning and forecasting.

The many financial reports that must be prepared for any business provides owners with the information needed to establish sound business strategy, make management decisions and understand if that business is facing opportunities (or challenges).

The article outlines seven reasons why quality financial reporting is so important, the consequences of poor reporting, and then provides 12 best practice steps that business owners can follow either with their accountant or independently, depending on your level of confidence and proficiency.

Business Australia concludes that accurate financial reporting is key to understanding the true position of your business in order to make informed decisions.

Conversely, the dangers of inaccurate financial reporting are extensive, so it pays to get it right.

Closing the gate after the horse has bolted?

The good news is that it’s easy to work with your bookkeeper to tap into more regular reporting that delivers the data in real-time so you’re not retro-fixing your business performance.

Ask the team at Notch Above Bookkeeping about how you can do that at the start of a new financial year. Small business owners are invited to contact us — Australia-wide — on 1300 015 130 or read more at Understanding the numbers.