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 certain business challenges.
The question is, how possible can it be for a small business to make business 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 reports for different fiscal periods are useful tools for monitoring business financial position, performance, sources and application of funds, in the form of, Balance Sheet (Statement of Financial Position), Profit or Loss Statements (Statement of Profit or Loss and other Comprehensive Income), and Statement of Cash Flows.
How Small Businesses Benefits from Interim Financial Reporting
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.
However, a small business can only take advantage of these benefits if it has an efficient and effective business tools for generating both Interim and Annual Financial Reporting at its disposal.
Small businesses who understand perfectly well this fact, avail themselves of the opportunity of using good Business Accounting Solutions/Software such as QuickBooks, SAGE Accounting, and so on; enabling them to generate routine and periodic Financial Statements with ease. All you need to do is to adjust the dates to reflect the timeframe or period under review, such as monthly, quarterly and half-yearly.
The growth of any small business depends also on how effective the business is and understanding the importance monitoring business finances and transactions from which periodic financial reports are generated; a prospect for future growth.
Do You Need Accounting Help?
Consistent up to date and cleaning of accounting records for sound business decision making, may be posing some difficulties when you are preoccupied with other business functions. Is it time to consider independent professionals because of certain technical complications that could occur along the line? It could also be daunting, time-consuming procedures. Not recording correctly and poor monitoring can cause complications and confusion.
At Fritznoble , we assist our clients on the best available options that suit their businesses...Reach out/ Outsource With Us… If Accounting works are bothering you, then it’s time you outsourced your accounting and bookkeeping requirements, this will help you concentrate more on core competencies of your business; with a team of professionals to help.
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