A “financial report” is a collective name for a document that gathers important financial information for distribution to the public. Accounting financial statements falls under the financial report umbrella.
It is incredibly important that your financial reports are kept up-to-date and accurate. Making sure they are produced in a timely fashion before the financial year period ends is something that every business must do. Financial accounting reports can help investors and creditors alike understand the company’s operating conditions and further help economic decision making. This will also help you to maintain your compliance and reputation in your industry.
A good financial reporting solution should be fast, easy to use, and above all, accurate. Premium Accounting Solution’s accountants have in-depth knowledge and understanding of the New Zealand financial accounting and reporting system. A business financial report can be required by different entities for different purposes, such as a loan application.
Talk to us and let us know your business concerns and we will provide you with the perfect financial support catered to your specific needs and requirements, or read on to learn more about financial reporting in New Zealand.
A Financial Report must include the following:
- Financial Statement
- Balance Sheet of Assets, liabilities, and Net Assets as at the end of the Income Year
- Profit and Loss Statement showing income and expenditure during the Income Year
- Statement of Accounting Policies (Set out applied or changed policies and assumptions describe any material changes in accounting policies used since the previous income year.)
- Statement of changes in owners’ equity (or statement of change in shareholders’ equity)
- Notes to Financial Statement
In New Zealand, the standard Financial Year period is from the 1st of April to the 31st of March. If you have a tax agent or accountant, you can apply to change from the usual financial year cutoff date to have a valid extension of time (which will be considered on a merit basis). For example, many farming and agricultural businesses have different tax dates due to the seasonal nature of their business.
Financial statements are the main component of a company financial report. The accounting information it provides plays an important role, which is mainly reflected in the following aspects:
- A comprehensive and systematic display of the company’s financial status, operating results, and cash flow during the financial year, will help managers understand the completion of the company’s various task indicators. This will help them find problems in time, adjust the business direction, and formulate measures to improve business management, and improve economic benefit in order to provide a basis for economic forecasting and decision making.
- It is conducive to investors and shareholders alike to grasp the financial status, operating results, and cash flow of the company. This will allow them to analyse the company’s profitability, solvency, investment income, development prospects, etc., and provide them with investment, loans, and trade Basis for decision-making.
- It is helpful for IRD to understand the operation status of the national economy. By summarising and analysing the financial statements provided by various units, we can understand the economic development of various industries and regions to macro-control economic operations, optimise resource allocation, and ensure the stable and sustainable development of the national economy.
The Financial Statement is a set of accounting documents that provide a record of the company’s financial performance and its financial position. The annual financial statement reflects the Financial Performance of a Company in the past fiscal period and its ending status.
The purpose of financial statements is to provide information about the financial position, cash flows, and the results of operations. This information helps the audience of these statements make decisions about the allocation of resources.
Year to date report (YTD) refers to the time period beginning with the first day of the current fiscal year going up to the current date. YTD information is valuable, especially when used for examining business trends over time or comparing a company’s performance data to peers or competitors in the same industry. The initialism often modifies concepts such as investment returns, earnings, and net pay.
Financial forecasting and budgeting are useful tools for small businesses and large businesses alike to use when establishing a plan for where they want their company to go and where it is currently perceived to be heading. Budgeting refers to where management wants to take the company, while financial forecasting identifies whether the company is heading in the right direction.
Although budgeting and financial forecast services are often performed together, some aspects distinguish the two concepts. Budgeting is used to assess the expectation of revenues that a business wants to achieve for a future period. Comparatively, financial forecasting is used to determine the amount of income or revenue that will be attained in a future period.