Struggling to present financial data clearly? A good financial report turns complex data into insights and helps stakeholders assess a company’s financial health.
From balance sheets to cash flow statements, these reports promote transparency and support informed decision-making.
In this post, I’ll share 15 financial report examples that showcase the best ways to communicate financial data.
And if you need a simple way to create financial reports, check out Vennagge’s report maker and access a range of tailored financial report templates.
What is a financial report?
A financial report provides a detailed overview of a company’s financial status for a specific period. It includes essential statements like the balance sheet, income statement and cash flow statement.
It serves as an important tool to assess profitability, liquidity and financial stability.
Here’s an example from the real-world. Most Fortune 500 companies publish annual reports to update shareholders on expenses, growth and net income. Most investors consider financial disclosures critical before making investment decisions.
By norm, financial reports should adhere to International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP). This ensures that businesses maintain accuracy, consistency and credibility in their reporting.
Why is a financial report important?
A financial report is crucial for assessing a company’s financial health and guiding decisions for investors, stakeholders and management. It gives them visibility into a company’s profitability, cash flow and liabilities.
90% of CFOs use financial reports to optimize growth, manage risks and attract potential investors. Besides, these reports also ensure transparency and compliance with IFRS and GAAP standards.
What are the key components of a financial report?
A financial report usually includes the following components:
- Income statement: Summarizes revenue, expenses and net profit
- Balance sheet: Displays assets, liabilities and shareholder equity
- Cash flow statement: Tracks cash movements from operations, investments and financing
- Statement of changes in equity: Highlights shifts in ownership interest
- Notes and disclosures: Provide explanations for financial data, ensuring transparency
What are the different types of financial reports?
Financial reports come in different types. Each one helps test a company’s finances and supports better decisions. Here are the most common types:
Annual financial report
A detailed report summarizing a company’s financial performance over the year. It includes the income statement, balance sheet and cash flow statement. It provides insights into profitability, assets, liabilities and shareholder equity.
Monthly financial report
A monthly financial report shows revenue, expenses and net profit or loss. It’s design to give a real-time view of a company’s financial health.
Businesses use monthly reports to track cash flow, refine budgets or manage financial risks.
Income statement report
Also called a profit and loss (P&L) statement, this report details revenue, operating costs and net earnings for a specific period.
It provides a clear view of profitability by outlining key performance metrics, such as gross profit margin and net income. Investors scrutinize this report to determine whether a company is generating sustainable profits.
Balance sheet report
This report outlines a company’s assets, liabilities and shareholders’ equity to offer a 360° view of its financial health. The balance sheet helps stakeholders assess a company’s financial stability, liquidity and capital structure.
Investors prefer to review a balance sheet report if they need to determine if a company has enough assets to cover its obligations. Similarly, lenders analyze it to track creditworthiness before approving loans.
Cash flow statement report
A cash flow statement report tracks the movement of money in and out of a business. It usually covers operations, investments and financing activities.
It categorizes cash flows to highlight a company’s cash generation and liquidity. Businesses use it to ensure enough cash reserves for operations. Investors rely on it to assess a company’s ability to fund growth or pay dividends without debt.
Budget financial report
A report that forecasts expected revenue, expenses and financial targets for a specific period.
It lets businesses allocate resources, set financial goals and measure performance against projections. Comparing budgeted versus actual figures helps companies pinpoint inefficiencies and reallocate funds. It also lets them make informed strategic adjustments to stay on track with financial objectives.
Statement of changes in equity
This report tracks changes in shareholders’ equity over time. It includes details like retained earnings, dividends, stock issuance and net income adjustments.
Investors use this report to track a company’s reinvestments, earnings distribution and growth. It’s particularly valuable for understanding a company’s financial strategy and long-term sustainability.
15 financial report examples to communicate financial data
Let’s explore some key financial report examples, their components and their significance.
Annual financial report
The annual financial report is like a yearly check-up for a company’s money. It starts with the company’s mission and vision, which tell us what the company wants to do and where it hopes to go.
Next is the financial overview. It covers key metrics like profit, income, budget, expenses, net income and revenue:
This report also highlights the year’s key milestones, challenges and achievements.
Whether it’s record-breaking sales or market expansion, it connects financial data to the company’s journey:
Financial analysts often look at this report to gauge the company’s performance against its mission and vision. This helps them assess or forecost its future growth trajectory.
Monthly financial report
A monthly financial report is essential for managing and overseeing a company’s finances. It provides a clear snapshot of revenue, expenses and profitability. Done well, it helps your business track its financial health.
For a detailed breakdown of business expenses, use an expense report template:
Tracking monthly figures helps you spot trends, address concerns and tackle short-term challenges. If performance strays from projections, you can adjust your plans to stay on track for growth.
To improve your financial process, consider tools that streamline finance management.
These reports break down sales revenue, operating expenses and liabilities. They help you make data-driven decisions, optimize cash flow and improve your financial health.
Income statement financial report
The income statement is one of the three key financial documents businesses use to report financial performance.
The balance sheet shows assets and liabilities. The cash flow statement tracks cash movements. And the income statement highlights revenue, expenses and profit.
It highlights critical metrics like operating expenses, sales revenue and net income. It also provides a clear view of business operations and industry position.
Here’s an example template of a financial report income statement:
Analyzing income statement data can help you spot efficiencies and identify underperforming areas. You can use this data to adjust your strategies to maximize financial performance.
Statement of cash flows financial report
The cash flow statement is a key financial report that tracks how money moves in and out of your business.
It tracks cash inflows from operations and investments. It also records outflows for expenses, business activities and financial commitments.
Here’s an example template:
This statement shows if your company generates enough cash from operations. It also indicates reliance on external financing.
It highlights cash management, providing key insights into financial health and operational efficiency.
Statement of change in equity financial report
The statement of change in equity tracks shifts in a company’s equity over a specific period. Also called the statement of retained earnings, it reveals financial decisions that influence shareholder value.
It covers key elements like net profits, losses and dividend distributions. This statement helps a company track how its retained earnings and improves financial health.
It reveals the company’s commitment to shareholders and gives insight into its financial strategy.
Summary financial report
A summary financial report gives you a high-level view of your company’s finances. It highlights key metrics like revenue, expenses, cash flow, assets, liabilities and equity.
This report helps investors and stakeholders quickly assess your business’s financial position at a glance.
Released quarterly or yearly, this report shares an insightful look at your company’s financial trajectory. It often serves as a starting point for deeper analysis:
Analysis financial report
Financial reports are essential for understanding a company’s financial health and performance. The income statement breaks down sales revenue, operating expenses and net income.
The balance sheet provides a snapshot of assets, liabilities and shareholders’ equity at a given time.
Comparing assets to liabilities helps you assess financial stability. Similarly, analyzing retained earnings reveals reinvestment strategies or dividend payouts. Financial ratios like earnings per share (EPS) influence stock prices and investor confidence:
Following GAAP or IFRS ensures financial reports remain consistent, transparent and reliable.
Business financial report
A business financial report acts as a guide, showing your company’s financial health over a specific period.
The income statement breaks down total sales revenue, separating operating from non-operating income. It also highlights net profit or loss, giving you a clear picture of financial performance.
The balance sheet is a key aspect of a financial report that summarizes assets, liabilities and shareholder equity.
Comparing assets to liabilities helps stakeholders assess financial stability and debt management. Accounts receivable shows how efficiently your company collects payments. Accounts payable shows how well you handle debts.
Cash flow statements track cash inflows and outflows from operations, investments and financing:
Together, these financial documents provide a complete picture of a business’s financial health. They help guide decisions on investment banking, marketable securities and other financial accounts.
Budget financial report
A budget financial report outlines a structured plan for your company’s finances over a set period. It includes projected income statements and expected cash flow statements.
This report helps you set financial targets for the short or long term. Comparing forecasts with actual data helps track performance and refine strategy.
Budgeting maps out expected revenue from sales, operations and other sources. It also outlines planned expenses, ensuring better financial control and resource allocation.
Comparing budgeted vs actual statements helps you spot opportunities and refine strategy. This report guides investment, financing and operations to keep the company on track for growth.
How to write a financial report?
Writing a financial report may seem complex, but a clear structure makes it easier to convey key insights. A well-crafted report provides transparency and helps you make informed decisions.
H2: How to Write a Financial Report?
Think of a financial report as your company’s financial story. It shows where the money’s coming from, where it’s going and what it all means. It’s a roadmap for stakeholders so that they can make smart decisions and investments.
But writing a great financial report isn’t just about crunching numbers. You need to carefully organize data in a way that’s clear, insightful and actionable. Let’s break down the process step by step:
Step 1: Offer a company overview
Start with a company overview. Cover operations, market position and business goals. Highlight financial health to give readers a foundation for understanding the financial data.
Step 2: Forecast sales and analyze key finances
Present your sales forecast, including projected revenue and key influencing factors. Cover essential areas like financial targets, operating revenue and non-operating revenue.
This gives you a clear overview of expected financial performance for the reporting period.
Step 3: Find out the company’s value
Incorporate a section dedicated to the company’s valuation, which may be determined by a 409A valuation.
Include assets, liabilities, shareholders’ equity and any short-term or long-term debt. Investors and analysts rely on the company’s valuation to assess its current worth and future growth potential.
Step 4: Add the summaries of key financial statements
A comprehensive financial report encompasses summaries of vital financial statements. Furnish a brief overview of the company’s income statement, balance sheet and cash flow statement.
These statements reveal net income, assets, liabilities and cash flows, offering a clear view of financial health. Following IFRS or GAAP ensures transparency and consistency.
Step 5: Finish with the summary of the entire report
Conclude the report by summarizing your findings. Give your final views about the company’s financial position, performance and potential. Share opinions on whether the company is poised for profit or might incur a loss.
Add key financial ratios like ROI, debt-to-equity and gross margin to strengthen your analysis. Provide a brief overview of the company’s financial health to guide investment decisions.
Related: 20 Professional Report Cover Page Examples & Templates [100% Customizable]
What is the difference between financial reports and financial statements?
Financial reports and financial statements both reveal a business’s financial health. However, they play different roles.
Financial statements include raw data like balance sheets, income statements and cash flow. Financial reports package that data into a bigger picture with insights and analysis.
Here’s how they stack up against each other:
Scope of the report and statement
A financial statement focuses on a specific financial aspect. In contrast, a financial report combines multiple statements with analysis, insights and context.
Formatting of the report and statement
Precision in presentation is important for financial statements like the balance sheet. They follow strict standards, organizing assets, liabilities and equity into distinct categories.
Financial reports offer more flexibility in format. They present consolidated data in a way that enhances clarity and decision-making.
Length of the report and statement
A financial report is more detailed than a financial statement.
It gives a complete view of a company’s financial standing and incorporates various metrics and in-depth analysis.
On the other hand, a financial statement is a concise document focusing on a singular financial facet.
Frequently Asked Questions (FAQs)
Got more questions about financial reports? Here are answers to some of the most common questions to help you:
What should a financial report include?
A financial report should include the income statement, balance sheet and cash flow statement. It should also include financial analysis, projections and accounting policy notes.
It should offer a 360° view of the company’s revenue, expenses, assets, liabilities and profitability.
How often should financial reports and statements be prepared?
Financial reports should be prepared monthly, quarterly or annually. Monthly reports track short-term trends. Quarterly and annual reports offer a broader financial picture. The frequency depends on the company’s size, industry and reporting requirements.
How can financial reports be made more visually appealing?
Use data visualizations like charts, graphs or infographics to make financial data easy to follow.
For instance, a well-structured layout, color-coded financial trends and clear typography improves readability. It also ensures stakeholders can grasp key insights without getting lost in numbers.
Where can I find free financial report templates?
Venngage offers a variety of ready-to-use financial report templates to simplify data presentation.
The templates are fully customizable and downloadable. You can create visually compelling reports that effectively communicate financial insights to stakeholders.
Master financial reporting for better decision-making
Financial reports help track a company’s health, whether through monthly insights or yearly overviews. Their variety ensures accurate financial assessments and informed decision-making.
These reports give stakeholders a clear view of a company’s financial standing and performance. Mastering the nuances of each type can improve financial transparency and decision-making.
Want to create clear and engaging financial reports? Simplify the process with Venngage’s easy-to-use report maker templates. Venngage’s wide variety of templates helps you find the perfect design to present key financial insights.
