Management and Financial Reporting

Management Reporting

The focus of management reporting is providing owners with information to make decisions and drive strategy. In addition to traditional financial statements (balance sheet, income statement, and statement of cash flows) management requires accurate and timely information to monitor, manage and improve the business. Example reports and dashboards that would be useful for this purpose include:

• Profitability / margin analysis by segment, customer, service/product line
• Trend analysis
• Cash flow and income statement forecasts
• Accounts receivable turnover
• Staff leverage

Financial Reporting

The focus of financial reporting is to provide third-parties such as banks or investors with a high level view of the financial condition and results of operations. The financial statements are typically prepared in accordance with generally accepted accounting principles (GAAP). Often these third parties want to see the involvement of an external CPA. We provide the following financial statement services:

• Preparation
• Compilation
• Review

The following guide explains the differences between these types of financial statement services.