Interim Financial Reporting as guided by IAS 34; Interim Financial Reporting; often applies when a business entity prepares an interim financial statements for a specific interim period ( any financial reporting period shorter than the usual full year; typically monthly, quarterly or half-yearly), without a specific mandate or requirement as to when to prepare such reports.
Although, the Standard does not have such mandate as to which business entity should publish interim financial reports, including the frequency, public-traded entities are encouraged to provide interim financial reports that conforms to the recognition, measurement and disclosure requirements of IAS 34.
Effects on Small Businesses
Basic challenges small business often struggle with are cash flows and liquidity issues. These challenges more often than not, demand that small business make effective business decisions to square up to the challenges.
Then, how could a small business make these decisions without adopting certain financial management tools enabling better financial management for steady business growth?
Interim financial statements contain the same documents found in annual financial statements which most small business owners and entrepreneurs are familiar with but in a condensed form. Both are useful tools for monitoring business financial position and performance in form of Profit or Loss Statements (Statement of Profit or Loss and other Comprehensive Income), Balance Sheet (Statement of Financial Position) and Statement of Cash Flows.
Benefits to Small Businesses
Small businesses benefit when owners can make informed business decisions due to available and adequate information. Interim financial statements help a business in tackling key challenges early enough and leverage on business opportunities.
Interim financial reporting also aids in identifying significant business changes and determine the deviation of actual results from planned/budgeted, then undertake corrective measures for necessary improvements.
Generating Interim Financial Reports
Most of our clients at Fritznoble Consulting use small business bookkeeping software programs such as QuickBooks, and are likely familiar with how to generate interim financial statements with this powerful softwares. All you need to is to adjust the dates to reflect the timeframe or period under review, such as monthly, quarterly and half-yearly.
If you are not yet using any bookkeeping software to manage your small business finances, we at Fritznoble Consulting can help you understand why bookkeeping is important and how these softwares can help you in monitoring your finances.
If you want an easy program to keep your business records and recommendations on Interim Financial Reporting , we at Fritznoble Consulting assist our clients on the best options available for them……
Reach Us or Outsource Your Work With Us… If Accounting works are bothering you, then it’s time you outsourced your bookkeeping and accounting requirements to us. Hire us for all your needs and this will help you get more time to concentrate on other core activities of your business. With team of professionals to help.Contact us (+234) 0703- 001-2266 Or Email us on(guest posts welcome!): fritzandnoble@gmail.com
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