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The Importance of Financial Reporting
Complete and accurate financial reporting is a continuous process. There are many aspects to financial reporting: timely processing of payables and receivables transactions, periodic cost allocations, monthly account reconciliations to ensure transactions are being processed as intended. Based on the financial reporting, decisions are made throughout the year by management.
Financial reporting takes time and effort. It is more than waiting for the results of the audit. At a minimum, department heads should receive a monthly report of revenues and expenditures compared to budget. This allows them to track how they are doing throughout the year. The governing body should be provided at least a quarterly report of revenues and expenditures. With this information, they are better able to make informed financial decisions.
Setting aside a portion of a meeting to review and discuss year-to-date financial status will go a long way to increasing transparency and educating the governing body. This will help ensure decisions made are in the best long-term interest of the residents and the municipality.
Maner Costerisan accounting professionals can help you with your financial reporting needs and can provide analysis and summary status to the governing body in a way they can understand. Give us a call 517.323.7500.