6 ESSENTIAL REPORTS OF A BUSINESS

March 24, 2021

It’s very difficult to grow and manage your business if you have no visibility of your company’s performance. That’s why having business reports is vital in evaluating your company’s performance and identifying areas of improvement.  Through the analysis of various information found in different types of reports, you will be able to see what is working and what is not working for your business and you can see where adjustments need to be made. Here are some of the essential reports that contain both the reports which are essential for business operations and those which are passed to the government.

1.      Inventory report

An inventory report shows you how much of your product is on hand at any given time. This is one of the simplest reports and it can be a simple checklist. However, if you want something that is more involving, you can create an inventory ranking report. This helps you know how well your products are selling in comparison to the overhead cost to be incurred for keeping them in stock.

2.      Annual report

This report shows you, your company’s achievements over the preceding year. Additionally, if the report shows high financial numbers, it can be used as a marketing tool in getting people more especially potential customers and investors

3.      Sales and revenue report

A sales and revenue report is one of the basic reports that you need to compile. This is a report that lists your sales statistics within a specified period. This report will help you in determining your profit margin by comparing your expenses to the sales statistics. Additionally, this report provides you with a clear snapshot view of how to effectively manage your sales in future by pinpointing you the best time when you can conduct your marketing campaigns.

4.      Marketing reports

The most important aspect of any business is marketing and it is important to monitor your efforts and their results. By compiling, evaluating and analyzing the information contained in marketing reports, it will be easier for you to track where your sales are coming from. This will help you in maximizing your sales and thus ensure you get good returns on your investments.

5.      Website traffic report

This type of report provides you with an online performance of your company. This type of report can be tailored to meet your needs from engagement levels to demographics.  This type of report will help you in knowing the people who are visiting your site, what they are looking for and it will also help you in getting more customers to make a purchase. Additionally, this report also shows you the areas where customers are losing interest and this will help you in knowing what adjustment you need to make so that it can be more appealing.

6.      Management reports

 Management reports are often a compilation of the balance sheet, profit and loss statement and the cashflow statement and thus it offers a company’s manager the necessary data like financial and operational information. It thus helps the company’s manager in directing and controlling their business by making more informed decisions.  With this report, you will be able to know where your business stands in terms of finances.Reporting provides a business owner with an insight into their company’s performance and how they can run the business successfully. To make logical decisions, you must incorporate these reports into your monthly, quarterly and yearly accounting.