Of the documents that are generated inside a company, the financial report is undoubtedly one of the most important. Thanks to him we can know nothing more and nothing less than the financial status of a business in a previously determined period.
The funny thing is that, despite having as much importance for the present as for the future of any company, not all directors or managers give it the attention they should or simply do not know how to write it effectively. Is this your case?
Key elements for writing a financial report
The financial report is a corporate document that is not made because it is. Before writing, it is necessary to identify the intention of the company and, above all, what specific objectives the document pursues. These are two conditions that a priori are revealed necessary in this process.
Also, there must be a series of elements that will give form and body to this document. They can be both direct sources for their elaboration and frameworks that deserve to be taken into account in their elaboration. Let’s review the 5 most important and steps to create successful reports. And, you can refer this CheapCustomPapers to know more tricks to write your financial reports quickly.
The financial report always has a series of antecedents that must be taken into account for drafting. If it is a previously established company, the background will be the old reports; If it is a newly created company, it will be the first financial statement. A financial report without background is not possible, because in that case, it will not go beyond being a budget or a forecast.
- Financial balance:
The financial report reflects the financial balance previously prepared by the company. Therefore, it is the main source for drafting, as well as other accounting and statistical documents.
- Profit-loss ratio:
The neuralgic part of any financial report is in the profit-loss relationships, something that should give back the document from beginning to end. This relationship corresponds to a specific period, for example, a semester, a year or even a longer period. The important thing is that there is consistency between the data.
- The flow of funds:
Cash outflow and cash flow movements must also be reflected in the financial report. These are all those movements that derive from the economic and commercial operations of the company and that undoubtedly influences the current financial status of the company.
- Other sources:
Being an internal document, the financial report will seek to include only corporate sources that help compose an image as accurately as possible of the company’s financial status. For example, you can use texts that talk about the liquidity of the business, the levels of debt (if such an aspect exists), economic management or even profitability. The idea is that, once this is done, the financial report will become the main consultation document for the future and the essence for the drafting of the next reports.
5-step plan for successful reports
Step 1: Formulate a Crystal Clear Writing Assignment
nd provide you with unnecessary work. Condition number 1 for a flying start is that you know exactly what the client expects from you. Before you start writing.
A clear writing assignment is inspiring and gives energy!
Only with a crystal clear writing assignment can you get started right away with the correct and desired content. The eternal procrastination is a thing of the past!
Step 2: Design a logical structure
Okay, the most important step has been taken. Then it’s time for an efficient writing plan. Without a plan, you will lose the overview and you will get into details too quickly. A common pitfall. Readers love reports that they can scan in two minutes in an outline.
Therefore, first, design a logical structure based on the questions that your readers have. This way you have a handy coat rack while writing.
You also immediately know what important information is and what is not. This way you prevent endless scrolling with your texts.
Step 3: Formulate attractively
It is your readers who determine whether your report is successful or not. If the text is difficult to read in their eyes, they will drop out. Because of this, they will not have a positive image of you as a writer. Unfortunately, they often don’t tell you this. But theyWell-written sentences you only have to read once to understand what it says.
So make pleasantly readable sentences that invite your readers to continue reading. No, quit on your reports, who doesn’t want that?
Step 4: Write convincingly
You have incorporated all your expertise in the report. And yet your advice is not followed. The content may be correct, but more is needed to convince your readers.
Without a demonstrable necessity or ultimate goal, your report soon ends up unread in the well-known drawer.
This is because trained drivers immediately put their finger on ‘the leak’ in your report. For example, where your argumentation is not conclusive or awkwardly presented.
As a consultant, content specialist or manager, good argumentation techniques are an absolute must. This enables you to provide convincing advice that is (demonstrably) of value to directors.
Step 5: Perfect your writing skills
During your training, you may not have learned, or insufficiently, how to write a business report effectively. Once at work you take the texts of your colleagues as an example. Just like they did this. This transfer action usually leads to incomprehensible texts. Then consider the following:
Reports often have one writer, but many readers.
Poorly readable reports cost your readers an enormous amount of time. Precious time. When you invest in perfecting your writing skills, this will pay for itself many times in the time savings of your readers! Clients, readers, and administrators will certainly appreciate this time-saving. And it only makes your work more meaningful and fun!