Business Performance Report: What is It & How to Write It?

performance report accounting

A business performance report is a valuable business tool that provides an overview of how the business is performing. It combines information and analysis for forecasting revenues, expenses and profit for the upcoming year. There are many ways to measure financial performance, but all measures should be taken in aggregate. Line items, such as revenue from operations, operating income, or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt. Business reporting is an essential part of running your business effectively, and despite the work that goes into doing it, performance reporting cannot be overlooked.

For some analysts, the cash flow statement is the most important financial statement because it provides a reconciliation between net income and cash flow. This is where analysts see how much the company spent on stock repurchases, dividends, and capital expenditures. It also provides the source and uses of cash flow from operations, investing, and financing. Independent accountants audit the information in a 10-K, and company management signs it and other disclosure documents.

Understanding Financial Performance

These tools can help in gathering the financial information in an appropriate manner and analyze it using the performance tools of the company. Budgets are considered to be an important financial tool that can help in managing the organizational funds and finances. The performance reports help in assessing the financial information to manage an effective decision based on the business environment. If you’re looking for a useful tool to make reporting easier, FreshBooks is here to help. Our Reporting and Dashboard features are designed for small businesses to create comprehensive but simple business performance reports.

  • The income statement starts with sales or revenues and ends with net income.
  • When putting together the framework of your business performance report, it’s vital that you only put time and energy into collecting the data that will help you.
  • Businesses must continuously assess and report their targets, goals, and objectives and make necessary adjustments.
  • A performance report addresses the outcome of an activity or the work of an individual.
  • There are several types of business performance reports you may need to create for your company.

So the shuttering of public venues and the stay-at-home mandates hurt its sales. If you’re still handling your bookkeeping process manually, this will be much more difficult than if you use online accounting software, especially one with reporting capabilities. Business performance refers to how well your company is performing by comparing the results of initiatives to objectives and evaluating to what extent you met your targets.


Understanding your business is not as simple as looking at profits and losses and deciding whether it is successful or not. That’s why we present to you, a cloud-based document collaboration platform that helps you create modern, digital integrated documents effortlessly. Once you complete all these steps, your performance report is ready to go. What we are trying to say is that they will need to get their hands on a performance report.

performance report accounting

That’s a lot of things to keep track of and we feel that in this age of technology, nobody should be stressing out so much over creating a report. You have to do the research, write the content, and to top all of this, you have to come up with a proper structure, focus on the format, and share information with other people. To show how well you performed you can divide things into 4 categories namely – Strong, Good, Fair, or Weak – which can help you focus on specific areas for improvement. Once you write your summary or synopsis, then you move on to the actual assessment of your business. This section breaks down each part of your business by evaluating all the major KPIs and metrics involved in measuring your results.

Track Spending Variances

Start your performance report by writing an executive summary that gives an overview of your business’s performance in all aspects of its operations. A performance report covers everything, including your employees’ performance. Analysts and investors use financial performance to compare similar firms across the same industry or to compare industries or sectors in aggregate.

Doing this will help you evaluate and measure your company’s performance against your missions and objectives and see how well you are doing in terms of achieving or meeting your goals. This report can narrow down and concentrate on the performance of a specific project or an employee or focus on the entire business itself. Something that will show them both the financial and non-financial performance of a company. Something that they can use to compare the business with its competitors. If the case of Simply Yoga’s planning and flexible budgets, the increase in revenue would lead you, as the manager, to think additional wages make sense! Coca-Cola derives more than a third of its revenue from non-retail channels, like restaurants and concession stands.

  • Managerial accounting reports on performance can provide a plethora of data about a company’s operations.
  • Every business has specific metrics that have to be monitored to improve business performance.
  • Financial performance indicators, also known as key performance indicators (KPIs), are quantifiable measurements used to determine, track, and project the economic well-being of a business.

When putting together the framework of your business performance report, it’s vital that you only put time and energy into collecting the data that will help you. Financial analysis refers to the process of studying and assessing a company’s financial statements—a collection of data and figures organized according to recognized accounting principles. Writing your own performance report for your business can be a time-consuming task, but only if you start from scratch. Lastly, it’s important that you do more than showcase your data with financial reporting.

Business Performance Report: How to Write a Business Performance Report?

Business management tools may relate to the analysis of financial information from the company and performance tools for managing company processes. Budgets are common financial tools used to mange a company’s finances; performance reports often relate to an assessment of specific functions in small business environments. By focusing on sales opportunities, performance reporting improves customer insights.

Make it as simple but informative as you possibly can—a good tool for this can be FreshBooks, which automatically generates simple but useful financial reports based on your data. The business performance report is designed to assist the management in your business development. This knowledge is used to improve business performance and for the identification of problems. Although the terms are sometimes used interchangeably, a company’s Form 10-K is not the same as its annual report. Both include information about the company and its financial performance over the last year. But the annual report is more of a polished publication, lavishly illustrated and describing various projects and initiatives the company undertakes.

A key document in reporting corporate financial performance, one heavily relied on by research analysts, is Form 10-K. The Securities and Exchange Commission (SEC) requires all public companies to file and publish this annual document. Its purpose is to provide stakeholders with accurate and reliable data and information that provide an overview of the company’s financial health.

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