Key Points:
- The role of financial reporting and management accounts is crucial for business growth, especially when partnering with strategic investors.
- Good financial reporting should include core financial statements, strategic insights, Key Performance Indicators (KPIs), and financial checks.
- Automating financial reporting tasks using tools such as Power BI data analytics can enhance productivity, minimize errors, and streamline processes.
Matthew Lee, founder of Bespoke M&A, explores the importance of savvy financial reporting and the benefits of automation in business growth. As businesses seek to expand and boost profitability, their management accounts and board reporting capabilities prove to be instrumental, particularly when partnering with strategic investors.
According to Lee, good financial reporting ought to include core financial statements, such as profit and loss, balance sheet, and cash flow statements. It should also feature strategic insights like scenario-based forecasts and product sales breakdowns, and track key performance indicators to offer valuable insights into the operational efficiency and overall health of the business.
The report should be flexible and adaptable, being able to incorporate new data as well as the ability to accept new trial balance codes. It’s also necessary to consider that new subsidiaries may have different accounting systems. If the business is considering acquisitions or adding new divisions, the financial reporting should be capable of including this information.
Embracing automation can benefit businesses by reducing the burden of repetitive tasks, allowing finance professionals to focus on strategic activities. Automation tools like Power BI and Power Automate can be combined to streamline processes, reduce manual errors, and increase efficiency, leading to a leaner finance operation. Moreover, agile businesses can respond quicker to market trends, supporting decision-making processes and facilitating forecast tracking.
In conclusion, adopting a strategic mindset coupled with automation can significantly boost financial reporting. It promotes scalability, allows investors to manage portfolios of companies in one place, and supports the growth of a business.
To offer such automation features, Bespoke Data presents a subscription analytics product that leverages automation, bridging skills gaps, saving time, and proving to be a cost-effective solution for businesses.