Let's face it: setting up and maintaining an accounting system, tracking expenditures and revenues, determining value of assets and basis for taxes - these things don't really seem like a whole lot of fun to many leaders. Nevertheless, clean, up-to-date finanical reports are an essential part of good stewardship.
Why is that?
- Clean finanical reports reduce waste. If you know how much you are spending, you can give some level of control.
- Clean financial reports reduce the risk of fraud. If you have people taking a careful look at the books on a regular basis, it's less likely that people with access to your finances can do something nefarious.
- Clean financial reports are the best way to create projections and plans. Without solid, current numbers, enterprises are flying blind when it comes to estimating where financial growth or pinch-points will be.
- Clean financial reports are a dose of reality. We leaders can often deceive ourselves into thinking that our organization is doing better or worse than it is. These numbers help to bring reality to bear.
- Clean financial reports spot problems. Clean reports allow leaders to see small problems and address them before they become significant.
- Clean financial reports keep you legal. Clean reports make sure that tax payments are made in full (and help with on time, too), and make sure that statutory requirements for organizations are met. Moreover, if legal questions arise as to your organization's or business' use of funds, the reports help to provide backing for what you actually did.
How clean are your reports?
If you would like to find out, we can assist you with a Financial Health Assessment. Click the link below to begin yours today!