You may be well aware of the myriad of features an accounting software offers—receipt scanning, expense tracking, automated billing, report generation, and so on. But how do you leverage your accounting software to its full potential? How do you take advantage of every feature to streamline your business’s accounting processes?
Any tool is of little use if you don’t know how to go about using it for the best results. And that is true for accounting software as well. Accounting software comes with features and modules to simplify reporting for you, but how do you go about doing it?
This article will walk you through how you can generate comprehensive business reports using accounting software.
But first, let’s understand the importance of accounting reports in streamlining a company’s management.
Why do you need to visualize accounting reports?
Collecting and understanding data is one thing, but if your findings are not easily communicable, they can be rendered useless for the business as a whole. Further, visual aid is always helpful when understanding data, especially financial data. Keeping that in mind, here are some reasons why you need regular access to business reports:
- Accounting reports help track the financial health of a company—whether it is for legal tax purposes, strategy-building processes, or simply introducing organization in your business transactions.
- Accounting reports eliminate ambiguity, provide clarity, and help business owners make data-driven decisions based on valuable insights.
- They help keep track of income and expenses, thereby providing visibility of company cash flow.
- They help reduce errors and inconsistencies in business reporting, which are rather likely to crop up otherwise.
- A cloud-based accounting system has access to up-to-date information, which ensures your reports are synced with the latest financial data. This real-time data visualisation ensures business owners can effectively build winning strategies for a company’s long-term success.
- Business reports help you assess current finances and forecast revenue for the upcoming quarters. The higher the accuracy of your records, the more effective your financial projection will be.
- Having comprehensive accounting data at your fingertips helps you make better-informed decisions, maintain budgets, and ensure competent management.
- A business income statement helps determine your company’s revenue. It takes into account sales in different regions, interest rates on loans, gains on assets, losses, non-operating revenue, incurred expenses, etc.
How to generate business income reports on your accounting software?
It is important to understand what constitutes a business income report. You need to keep it concise and to the point, while conveying all the essential information and not missing out on anything.
Accounting reports are essentially statements detailing business transactions that give business owners insight into the financial status of a company. These contain charts, graphs, and other visual tools to communicate important information. Business reports are created for a variety of purposes—to understand the profitability of the company, analyse sales in different regions, measure financial reserves, etc.
For example, a balance sheet is a compilation of financial data that provides knowledge of a business’s assets, liquidity, and equity. An income statement is used to get insight into the profitability of a product or the company whereas a cash flow statement details the incoming and outgoings of a business.
This gives a clear picture of how competent a company is at generating cash and maintaining the flow over a period of time.
Generating income statements on accounting software is simple and takes only a few minutes.
All you have to do is visit the dashboard, and you will have instant access and visibility into your financial reports, profit & loss history, and balance sheet.
Select the date or period of the financial reports and the software will generate the report you want to view.
Your dashboard is a powerful tool that helps you communicate key financial details to authorized personnel in a manner that is comprehensible and accessible to viewers. One look at the dashboard, and you can get a clear picture of profits and losses, areas where you might be struggling, and whether any changes have been made. This also helps improve your decision-making abilities.
Always make sure the data you are feeding your software is accurate so it can generate high-quality reports with actionable and effective insights.
Leverage Dext to Generate Meaningful Insights and Reports
Make sure the accounting software you choose matches your business requirements—accessibility, requisite features, usability, and so on. Dext accounting software facilitates invoice processing, helps record expenses, automates billing, and generates comprehensive accounting reports for effective data-driven decision-making.
Dext Prepare and Precision work in tandem to ensure you can easily upload data on the cloud, which will be organised and sorted to precision. This facilitates the generation of high-quality reports with meaningful insights to cater to your business needs.
Sign up with https://dext.com/uk and get your accounting affairs in order today!