As a business grows, there will be a greater need to understand how funds are being used and how budgets are being managed for specific projects and expenses. Quarterly reporting looks at three-month consecutive periods over a one-year period, and tracks whatever criteria are most important to the business owner or manager.
There are many benefits to implementing quarterly reporting. Quarterly reports can be used to follow the trajectory of a project or sales campaign and can mark important milestones and sales goals for a given period. It is a three-month progress report that describes what has been achieved and reports on what has been spent and what is left in the budget for a project or a campaign, etc.
This is helpful for a number of reasons, but most importantly, it allows the flexibility to pivot and make financial adjustments as needed to stay within the budget or to allocate unused funds to another project or expense. You know the project or campaign’s status, how much money has been spent and where, and if you are still on track to meet deadline and stay on budget.
“Quarterly reporting is a powerful tool for business management to discover trends and make informed decisions.” Jennifer King, Founder and CEO, EVA Business Solutions
Potential investors and creditors can gain a better understanding of how your business operates through the review of quarterly financial activity reports, while existing investors and creditors can use these reports as a progress report on how their financing is being utilized.
Quarterly reports can be as simple as a PowerPoint presentation or as formal as a customized report prepared by your bookkeeping and accounting firm. Really good bookkeeping and accounting firms will help you design customized reports based on your specific reporting requirements. Depending on your fiscal year, quarterly reports will start at the beginning of the first three-month period and be generated four times a year to review each program or campaign.
If you require your departments to produce quarterly reports, it will help them become more accountable for budgetary expenses. Many companies build quarterly reporting into performance appraisals for their senior management team.
Once you decide on the type of report you want to generate, you can build a report template to make it easy going forward. Make sure your report allows room to include anecdotal points to address any project changes or modifications, as well as to provide a summary on why your project or campaign met or did not meet strategic goals or objectives.
It’s also a good idea to anticipate the questions your audience or reader may ask and address any foreseeable questions they would want to be answered. Make sure to double check and proofread the report and verify the numbers for accuracy before sending out. Once you get started, you’ll see how easy it becomes to manage your business and stay on track by using quarterly reports!
EVA Business Solutions loves to help our clients create profitable businesses and keep them running smoothly! We are a virtual bookkeeping and accounting service ready to assist you with all of your bookkeeping and accounting needs. Call us today at (615) 461-7157.