More Data. More Confusion
The world of accounting has evolved significantly over the years, and with the advent of technology, data has become more abundant and accessible. However, clients often struggle to make sense of the financial reports provided to them by accountants. This confusion can lead to wrong decisions, putting the business at risk.
Stimulate Questions
One of the biggest issues with financial reports is providing data without context. A 5% increase in revenue may seem impressive, but it is essential to analyze if the increase is taking into account the additional costs or employees. To help clients make informed decisions, it is crucial to provide reports that stimulate questions and highlight data points that require attention.
Highlight Important Data
The solution to this problem is to ensure that clients understand their reports. Accountants must take the time to explain financial reports to their clients, defining technical terms and presenting data in a clear, concise, and understandable manner. It is also important to use visual metrics like charts and graphs to make the data more digestible.
Know Clients Goals
To start, accountants must understand their client’s businesses, discover their needs and implement the metrics that matter most to them. They should then provide a simple report that highlights the necessary data and schedule a call to walk clients through the report format, clarify jargon, and explain the data they should expect.
Don’t Waste Time
Simplifying financial reports can be time-consuming, which is why accountants should consider automating the process. SaaS solutions like Reach Reporting can help automate financial statements and generate visual reports that highlight financial data as digestible bite-sized metrics. This automation helps accountants save time while showcasing their communication skills and core competencies.
Final Thoughts
In conclusion, simplifying financial reports is vital to help clients make informed decisions. Accountants must provide reports that stimulate questions, highlight data points that require attention, and use visual metrics to make data more digestible. By automating the process with solutions like Reach Reporting, accountants can save time and provide valuable insights that can help clients grow their businesses.