What makes corporate finance reporting unique compared to other types of reporting?

2 The types of corporate finance reports

Corporate finance reporting involves producing different types of reports for a variety of audiences, with varying frequencies and levels of detail. Financial statements are the core reports that show the company's income, expenses, assets, liabilities, and equity for a given period. These are prepared according to accounting standards and principles, such as GAAP or IFRS, and audited by external parties. Management reports, on the other hand, are internal reports that show the company's performance against its goals, budgets, and forecasts. Executives and managers use these to monitor, evaluate, and improve the company's operations. Investor reports are external documents that show the company's financial and non-financial highlights to current and potential investors. Lastly, regulatory reports demonstrate the company's compliance with laws and regulations in its industry, market, and jurisdiction.

3 The skills of corporate finance reporting

Corporate finance reporting requires a combination of skills beyond accounting and finance. Analytical skills are necessary to collect, process, and interpret financial and non-financial data, identify trends, patterns, and anomalies, measure and report on the company's performance, position, and prospects, as well as provide insights and recommendations. Communication skills are needed to present and explain financial and non-financial information in a clear, concise, and compelling way, while also tailoring reports to different audiences, formats, and purposes. Technical skills enable the use of various tools and systems to prepare, organize, and deliver reports. Technical skills help automate processes to ensure the quality, accuracy, and security of your reports.

4 The challenges of corporate finance reporting

Corporate finance reporting can be a difficult process. It involves dealing with complex and dynamic financial and non-financial information, as well as complying with various accounting standards and principles, laws and regulations, and stakeholder expectations. This complexity can lead to errors, inconsistencies, and confusion in your reports, as well as increase your workload and stress. Additionally, corporate finance reporting requires making assumptions, estimates, and projections about the future while facing risks and uncertainties that can affect the company's performance, position, and prospects. This uncertainty can lead to volatility, variability, and unpredictability in your reports, as well as reduce your confidence and credibility. Furthermore, corporate finance reporting involves competing with other companies and professionals for the attention, trust, and support of your stakeholders while staying ahead of the market trends and developments. This competition can lead to pressure, expectations, and criticism in your reports; it can also challenge your creativity and innovation.

5 The best practices of corporate finance reporting

When it comes to corporate finance reporting, there are some general best practices that can help you succeed. Planning ahead, for example, means setting objectives, timelines, and responsibilities for your reporting processes, as well as gathering and verifying the necessary data and resources. This will help you avoid delays, mistakes, and conflicts in your reports. Additionally, it's important to prioritize and highlight the most relevant information for your stakeholders and provide context, analysis, and commentary. Doing this will help you avoid clutter, redundancy, and confusion in your reports. Finally, make sure to follow the same standards, principles, and formats for your reports to ensure alignment and coherence among them. This will help you avoid discrepancies, contradictions, and misunderstandings in your reports.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?