Financial reporting is largely overlooked by most small and medium sized businesses that are privately held. Typically there is a lack of focus on the accounting and finance function in these types of entities because they are looked at as overhead or non-value added functions that are not really important. All of this rings true until your entity runs into a government audit or is subject to some other request for financial information from an outside third party. Then businesses typically scramble around trying to put something together to support what they have been doing over the past number of years. In the end you need to call in your tax partner or an audit firm to get in order what could have and should have been the expectation all along. These “under the gun” scenarios can become extremely expensive in both professional fees and interest and penalties levied by the government office performing the audit.
Financial Reporting and Bank Liaison
In addition, businesses of this size are typically required by their financial institution to do monthly or quarterly reporting in order to maintain your entities lending facility. Many SME’s do a poor job or not only producing the information required but also present the information in a form that does not show your entity in the best light. Incomplete or incorrect financial reporting can lead to a number of issues that can again drain valuable time from running the operation and instead tying up key people in answer questions or correcting reporting that was the source of the problem. Everything seems to slip buy when the business is running well and the economy is excelling, but that never goes on forever.
Every business hits bumps in the road and timely and accurate financial reporting are imperative to avoiding any reason for your lender to start asking a million questions about your businesses financial situation in the wake of some uncontrollable situation that negatively affects your business.
By investing a little time and money in the financial reporting function of your business you will not only save your business from unwanted interruptions but you will also gain access to valuable information that will not only keep your lenders and other third parties at bay and happy but also will have financial information available to you and your business to make timely and effective decision that will allow your business to grow and prosper. It is difficult enough to manage all of the day to day stresses of running a successful business. Let Thrive Strategic Business Solutions Inc. take the concerns of financial management and reporting off your plate so you can concentrate on running your operation to achieve the best results possible.
Thrive can not only help with developing a process and improving the timing of your financial reporting but works to build your finance and accounting teams so that they are able to provide your business with the results you need long after our engagement has ended. We work to make sure you get what you are looking for and that the results are long lasting.