Financial Reports vs. Operational Reports

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Financial reports and operational reports are different. They will show different aspects of your business. This content will help you to determine the difference between financial reports and operational reports.

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www.analytix.com | 781-503-9004 | salesanalytix.com Financial Reports vs. Operational Reports Financial reports and operational reports are different. They will show different aspects of your business. This content will help you to determine the difference between financial reports and operational reports.

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www.analytix.com | 781-503-9004 | salesanalytix.com Critical to the success of any small to mid-sized business is financial stability. As a business owner you should be able to discern which indicators determine financial stability and which indicators warn of financial challenges ahead. All of this information can be gathered from regular reviews of your financial and operational reports. Both contain key data and information that business owners need to know but these reports serve different purposes. Financial reports track how much money your business is making and how you are spending that money as of a specific period in time. As a business owner you obviously want to know this information. However there are additional stakeholders or potential stakeholders that may need to know this information as well such as investors or creditors. Examples of various financial reports are a balance sheet which summarizes a company’s assets and liabilities an income statement which indicates how much profit a company generates and a cash flow statement which shows a company’s sources and uses of cash. Financial reports show historical data but they provide insight into how a business spends its profits whether they are reinvested into the business and whether the company can sustain future growth. Operational reports provide business intelligence on how efficiently a company performs. These reports allow companies to evaluate its current and future financial situation. With the correct systems and tools in place operational data can be tracked real-time so that businesses are able to react and adjust their practices effectively. Business owners should review operational reports daily. These reports can vary by industry. Restaurants may need to track average time per table/meal whereas hotels may need to track occupancy rates. Actions taken by business owners resulting from this garnered business intelligence can have an immediate dramatic impact on productivity and ultimately profitability. As a small or mid-sized business owner keeping tabs on both your financial and operational reports will help you run your business more effectively. We are currently offering a free analysis of your business processes and accounting system which could help you to better prepare and understand your financial and operational reports. If you would like to learn more on how Analytix Solutions can help move your business forward please call me directly at 781.503.9002 or email me at salesanalytix.com. Share the Original on Social:

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