News & Insights
News
Insights
Recent Posts
- Understanding Deferred Taxes: Why Book Income and Taxable Income Don’t Always Match
- Repair or Improvement: Does the Distinction Matter Under Current Tax Law?
- Restructure Your Nonprofit with Confidence
- Which Products Really Drive Your Business’s Profits?
- IRS Releases Guidance on the Paid Family and Medical Leave Tax Credit
- Plan Before Expanding Your Nonprofit’s Staff
- The Business Lifecycle Part 5: The Expansion Stage
- Worker Misclassification Can Carry Serious Consequences
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.
The materials provided in the News & Insights section are for general informational purposes only and may not reflect the most current legal, tax, or financial developments. While we strive to ensure accuracy at the time of publication, Maner Costerisan does not guarantee that the information remains up-to-date or free from error. We recommend consulting directly with a Maner Costerisan team member to confirm the applicability and relevance of any information to your specific situation.