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Investor reports are an essential component if you want to run your business efficiently. These documents communicate your company’s performance and progress to those who’ve put their money behind your business and placed faith in the growth and success of your company.
\n\n\n\nThink of them as a tool for keeping your backers up to speed with what’s happening within the company, how well (or not so well) things are going, and where you see the business heading.
\n\n\n\nA great investor report can make the difference between an investor’s decision to keep their money in your business or consider other investment opportunities.
\n\n\n\nThat’s why you need to learn the ins and outs of creating a winning investor report, and this article provides you with a roadmap to achieve just that.
\n\n\n\nWhen creating a winning investor report, there are two ingredients you can’t afford to skip: clear communication and transparency.
\n\n\n\nTransparency is about giving your investors the whole, unfiltered truth about your company’s performance. This includes both the highs and the lows. You might think, “Isn’t it better to sugarcoat the bad stuff?” Not really. It’s important to remember that your investors have probably been in the game for a long time and can tell when you’re sugarcoating crucial information about your performance.
\n\n\n\nAfter all, most investors get it – it’s not all smooth sailing when running a business. By being real about how your company’s doing, you’re actually building trust. And that trust? It’s the bedrock for a lasting relationship with your investors.
\n\n\n\nBut there’s more to it than just being upfront. Another major ingredient in the trust-building recipe is clear communication. This means crafting an investor report that’s a breeze to understand. No jargon, no fluff – just the important stuff.
\n\n\n\nAfter you’ve presented your data clearly and transparently, you should provide context to it. This might involve comparing your performance to previous periods, explaining why you’ve fallen short of or exceeded expectations, and discussing how you plan to improve going forward.
\n\n\n\nBy doing so, you give your investors the full story behind the figures, making your report more insightful and engaging. Investor reports offer a chance to engage your investors and make them feel part of your company’s journey. For example, you could share challenges you’re currently facing, areas where your investors’ expertise or connections could be handy, or exciting plans you’re developing.
\n\n\n\nOn most occasions, your backers will be glad to help out – after all, it’s their money on the line as well.
\n\n\n\nThe good news is, you don’t have to do it all alone. There are several software and digital tools that can help streamline your investor reporting process.
\n\n\n\nWho said investor reports have to be boring? With the help of AI and other software tools, you can make them eye-catching and user-friendly for anyone reading them.
\n\n\n\nAnd if you need help creating reports that’ll satisfy your investors, Modeliks Financial Reporting is here to help.
\n\n\n\nThe frequency of investor reporting will vary based on the stage and nature of your business. Early-stage companies might want to send monthly updates, since investors will be generally interested to see how the business progresses during its initial phases.
\n\n\n\nIn contrast, larger and more stable companies might choose to do this quarterly once they have developed a solid relationship with founders. The rule of thumb is: Don’t bombard your investors with too many updates and also don’t leave them in the dark for too long.
\n\n\n\nWhile there’s no one-size-fits-all answer to this, some elements should definitely be included. This includes key metrics like new customers acquired, financial projections, updates on your product or service, or changes in your team.
\n\n\n\nThe specifics can vary depending on your business model or industry.
\n\n\n\nFor example, a tech start-up might focus on updates about its software and user growth. On the other hand, a manufacturing company might talk more about its production numbers and supply chain.
\n\n\n\nSo, what have we learned? Writing a great investor report requires a balance of transparency, clarity, and in-depth analysis. It’s not just about sharing data – it’s about presenting it in an easy-to-understand manner while providing the necessary context. It’s about engaging your investors and making them feel like they’re a part of the team.
\n\n\n\nEmbrace the digital tools that can make the process smoother. Be mindful of the frequency of your reports and customize your content based on your business model and industry.
\n\n\n\nUltimately, a well-prepared investor report can boost investors’ confidence in your business, ensure they’ll continue providing financial support, and open the door to potential future investments. That’s why it’s worth taking the time and effort to get it right.
\n","slug":"create-an-investor-report","date":"2023-10-30T10:47:00","categories":{"nodes":[{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["reports-and-dashboards"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"},{"name":"investor report"}]},"featuredImage":{"node":{"id":"cG9zdDoxNDc1","sourceUrl":"/images/cms/Modeliks-sliki-1920px-x-1280px-09.jpg","altText":"investor report - financial dashboards"}},"seo":{"metaDesc":"Investor report recipe, process, data analysis, content and frequency. Financial performance & investor report in Modeliks is one click away."},"modified":"2024-09-05T10:44:21","related":[{"id":"cG9zdDo0NjY4","title":"Step-By-Step Guide to the Month-End Close Process","content":"\nManaging a successful month-end close process is essential for any business aiming to maintain accurate financial records and make informed decisions. Month-end close involves a detailed review and reconciliation of financial activities from the previous month to ensure all data is accurate, compliant, and ready for reporting. In this guide, we’ll walk you through each step of the month-end close process, highlight best practices, and provide tips to streamline your operations.
\n\n\n\nThe month-end close is a systematic process where finance and accounting teams finalize financial transactions, generate reports, and reconcile accounts at the end of each month. The goal is to ensure that all income and expenses are accurately recorded, financial statements are complete, and the business has a clear picture of its financial health.
\n\n\n\nA well-executed month-end close process provides valuable insights into your company’s financial performance. It helps identify discrepancies, ensures compliance with regulatory requirements, and prepares the business for internal and external audits. Moreover, it enables leadership teams to make strategic decisions based on reliable financial data.
\n\n\n\nThe first step in the month-end close process is gathering all necessary financial data. This includes invoices, bank statements, and expense receipts. Ensure all credit and debit entries are accurately posted and cross-reference these entries with your internal records. Missing or incomplete data can cause delays and lead to inaccurate financial reporting.
\n\n\n\nBest Practice: Use a checklist to ensure all data is collected and accounted for. Designate a point of contact for each type of financial data, such as revenue, expenses, and payroll, to streamline communication and reduce bottlenecks.
\n\n\n\nNext, review and reconcile your accounts payable and accounts receivable ledgers. Match all vendor invoices to purchase orders and receipts. Verify customer payments against the corresponding ledger entries. If there are discrepancies, investigate and resolve them before moving forward. Proper reconciliation is critical to ensure the accuracy of your financial statements.
\n\n\n\nBest Practice: Communicate regularly with vendors and customers to promptly address outstanding issues. Set deadlines for receiving vendor invoices and resolving customer payment disputes before the month-end close starts.
\n\n\n\nReconcile all bank and credit card transactions with your general ledger. This process involves comparing the balances in your bank statements with the corresponding entries in your accounting system. Adjust for any discrepancies, such as unrecorded transactions or bank errors, by making the necessary journal entries.
\n\n\n\nBest Practice: Schedule weekly or bi-weekly reconciliation sessions during the month. This reduces the workload at month-end and ensures that discrepancies are identified and corrected early on.
\n\n\n\nEnsure all accrued expenses, such as payroll, interest, and taxes, are recorded correctly. Similarly, review prepaid expenses like insurance and rent, making adjustments for the portion of these expenses that apply to the current month. Accrual adjustments are essential to match revenues and expenses in the correct reporting period.
\n\n\n\nBest Practice: Set up a review system where senior accountants verify accrual entries to ensure they are accurate and aligned with the company’s financial strategy.
\n\n\n\nFor businesses with inventory, perform a physical count and reconcile the count with your financial records. Similarly, update the value of fixed assets, including any new purchases, disposals, or depreciation. Accurate inventory and asset tracking ensure your balance sheet reflects the true value of your company’s assets.
\n\n\n\nBest Practice: Implement cycle counting for inventory. This approach involves counting a portion of your inventory regularly rather than performing a full count at the end of each month, reducing discrepancies and improving accuracy.
\n\n\n\nEnsure that all payroll entries, including salaries, benefits, and taxes, are correctly posted. Reconcile payroll accounts with your payroll register and make adjustments as needed. Similarly, review operating expenses, such as utilities and office supplies, to ensure they are correctly allocated and posted to the appropriate accounts.
\n\n\n\nBest Practice: Reconcile payroll and operating expenses separately to avoid confusion. Set deadlines for each process and ensure the person responsible for each category knows these timelines.
\n\n\n\nConduct a variance analysis to compare actual results against budgeted figures. This analysis helps identify any anomalies that require further investigation. Make any necessary adjustments to correct errors or reflect new information that wasn’t previously available.
\n\n\n\nBest Practice: Hold monthly variance meetings with department heads to review significant deviations from the budget. This fosters accountability and enables proactive measures to address issues before they escalate.
\n\n\n\nAfter reconciling accounts and making adjustments, generate preliminary financial statements, including the balance sheet, income statement, and cash flow statement. Review these statements for accuracy and consistency. Cross-check all figures and ensure that all adjustments have been accounted for.
\n\n\n\nBest Practice: Create a standardized template for reviewing financial statements to ensure all aspects are covered and nothing is overlooked. This can include a list of common errors or a guide on how to validate the accuracy of entries.
\n\n\n\nOnce the financial statements have been reviewed and verified, finalize the month-end close by locking the accounting period in your financial system. Distribute the final reports to relevant stakeholders, such as department heads and senior management, for their review and analysis.
\n\n\n\nBest Practice: Implement a secure, cloud-based platform to distribute financial reports, ensuring that stakeholders can access up-to-date information from anywhere.
\n\n\n\nTo optimize your month-end close, consider leveraging technology solutions that automate routine tasks, such as bank reconciliations and variance analysis. Tools that provide real-time financial insights and automate data entry can significantly reduce the time spent on manual work, allowing your team to focus on strategic financial analysis and decision-making.
\n\n\n\nA streamlined month-end close process is crucial for maintaining accurate financial records, ensuring compliance, and supporting business growth. By following these step-by-step instructions and implementing best practices, you can transform your month-end close into an efficient and manageable task.
\n\n\n\nWant to improve your month-end close process? Contact us today to learn how Modeliks can help you streamline your financial operations and ensure accurate, timely reporting every month. Start your free trial today!
\n\n\n\n\n","slug":"month-end-close","date":"2024-10-10T06:59:10","categories":{"nodes":[{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["reports-and-dashboards"],"videoHeader":null},"tags":{"nodes":[{"name":"financial reporting"}]},"featuredImage":{"node":{"id":"cG9zdDo0Njcw","sourceUrl":"/images/cms/month-end.jpg","altText":"Overview of month-end close process, steps, and best practices for maintaining accurate financial records and ensuring compliance in business accounting."}},"seo":{"metaDesc":"Discover the steps and best practices for an efficient month-end close process. Learn how to streamline operations with Modeliks."},"modified":"2024-10-10T06:59:11","related":null},{"id":"cG9zdDoyNzg0","title":"eCommerce Dashboard & Most Important eCommerce KPIs (in 5 minutes)","content":"\nIn today’s fast-paced business landscape, tracking the most important eCommerce KPIs via eCommerce Dashboards is essential for understanding your business’s health and driving growth. But with so many metrics to consider, how do you know which ones are worth your time? That’s where a well-designed eCommerce dashboard comes into play and why it is so important
\n\n\n\nIf you’re looking for a quick and effective way to keep your finger on the pulse of your online store, check out our latest YouTube video, “eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes).” In this video, we break down the essential KPIs every eCommerce business owner should track to make informed decisions and boost profitability—all in just five minutes!
\n\n\n\nSales Metrics: Understand the importance of tracking total sales, average order value (AOV), and sales conversion rates. These KPIs are critical for measuring your store’s performance and identifying opportunities to increase revenue.
\n\n\n\nCustomer Metrics: Learn why customer acquisition cost (CAC) and customer lifetime value (CLV) are crucial for assessing your marketing efforts’ effectiveness and ensuring that you’re attracting profitable customers.
\n\n\n\nTraffic Metrics: Discover how tracking unique visitors, traffic sources, and bounce rates can provide insights into your website’s performance and help you optimize your marketing strategies.
\n\n\n\nInventory Metrics: Find out why keeping an eye on inventory turnover rate and stock levels can help you manage supply chain efficiency and avoid overstocking or stockouts.
\n\n\n\nOperational Metrics: Get to grips with cart abandonment rates and order fulfillment times to ensure a smooth customer experience and identify areas for improvement in your operations.
\n\n\n\nAn eCommerce dashboard is more than just a reporting tool; it’s a decision-making ally. By consolidating your data into an easy-to-understand visual format, you can quickly assess your business’s performance, identify trends, and make informed decisions without getting bogged down in spreadsheets.
\n\n\n\nWith the right KPIs on your eCommerce dashboard, you can:
\n\n\n\nReady to streamline your eCommerce analytics and focus on the metrics that matter? Watch our video now and learn how to set up an effective eCommerce dashboard in just 5 minutes: eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes) or visit Modeliks to learn more about our financial planning tool.
\n","slug":"ecommerce-dashboard-most-important-ecommerce-kpis-in-5-minutes","date":"2024-08-30T10:04:15","categories":{"nodes":[{"id":"dGVybToxMw==","name":"Reports & Dashboards"}]},"mainCategory":{"mainCategory":["reports-and-dashboards"],"videoHeader":"https://www.youtube.com/watch?v=HJQo4LQaHvs"},"tags":{"nodes":[{"name":"business planning"},{"name":"Dasboards"},{"name":"eCommerce"},{"name":"financial forecasting"},{"name":"financial modeling"},{"name":"financial reporting"},{"name":"Forecasting Operating Expenses"},{"name":"investor report"},{"name":"KPIs"},{"name":"Operating Expenses"}]},"featuredImage":{"node":{"id":"cG9zdDoyNzg1","sourceUrl":"/images/cms/8b420bca9bd43d52.png","altText":"eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes)"}},"seo":{"metaDesc":"eCommerce Dashboard | Most Important eCommerce KPIs (in 5 minutes). Learn How & Why Performance Tracking is Crucial for an eCommerce Business"},"modified":"2024-08-30T10:04:16","related":null},{"id":"cG9zdDoyNDI3","title":"COGS vs Operating Expenses: What is the Difference?","content":"\nUnderstanding the distinction between Cost of Goods Sold (COGS) and operating expenses (OPEX) is crucial for any business owner. While both are integral to business operations, these financial terms have distinct implications for the company’s financial health. This article will explore the COGS vs Operating Expenses differences, how to calculate them, and why they matter to your business.
\n\n\n\nCost of Goods Sold (COGS) represents the direct costs of producing goods or delivering services. These costs include raw materials, direct labor, and other expenses directly tied to the production process. For a retail business, COGS would include the purchase price of merchandise sold during the period.
\n\n\n\nFormula: COGS = Beginning Inventory + Purchases During the Period − Ending Inventory
\n\n\n\nFor example, if a company starts with $10,000 in inventory, makes $5,000 in purchases, and ends with $3,000 in inventory, the COGS would be $12,000.
\n\n\n\nOperating expenses (OPEX) are the costs incurred in daily operations. Unlike COGS, OPEX includes indirect costs that are not directly tied to producing goods or services. Operating expenses include rent, utilities, office supplies, and salaries for employees not involved in production.
\n\n\n\nFormula: OPEX = Total Expenses − COGS
\n\n\n\nFor instance, if a company’s total yearly expenses are $100,000 and the COGS is $40,000, the OPEX would be $60,000.
\n\n\n\nThe primary difference between COGS and OPEX lies in the costs. COGS includes direct costs that vary with production levels, while OPEX consists of indirect costs that are generally fixed and do not fluctuate with production volumes.
\n\n\n\nBoth COGS and OPEX are recorded on a company’s income statement but appear in different sections. COGS is subtracted from total revenue to determine gross profit, while OPEX is subtracted from gross profit to calculate operating profit.
\n\n\n\nUnderstanding COGS vs Operating Expenses is crucial for developing an effective pricing strategy. A business with low COGS can offer competitive pricing while maintaining healthy profit margins. Conversely, businesses with high OPEX may need to implement premium pricing strategies to cover their higher overhead costs. Discover how to determine the best pricing strategy for your products in our article “How to Calculate the Selling Price of a Product?”.
\n\n\n\nTracking COGS and OPEX is essential for several reasons:
\n\n\n\nAccurate COGS and OPEX tracking help determine the business’s true profitability. Gross profit is calculated by subtracting COGS from revenue while operating profit is calculated by subtracting OPEX from gross profit.
\n\n\n\nMonitoring these expenses allows businesses to identify areas of potential savings. For instance, a company might negotiate better deals with suppliers if COGS is high due to material costs.
\n\n\n\nIn financial analysis, both COGS and OPEX provide critical insights:
\n\n\n\nCOGS: Indicates how efficiently a company produces goods or services. Reduced COGS relative to revenue signifies higher production efficiency.
\n\n\n\nOPEX: Reflects a company’s operational efficiency. Lower OPEX as a percentage of revenue indicates effective management of operational costs.
\n\n\n\nDistinguishing between the Cost of Goods Sold (COGS) and operating expenses (OPEX) is fundamental for accurate financial reporting and analysis. While COGS relates to the direct costs of production, OPEX encompasses the indirect costs necessary for running a business. Understanding and effectively managing these expenses can significantly enhance a company’s profitability and operational efficiency.
\n\n\n\nEnhance your financial management skills and take control of your business’s profitability. Sign up for Modeliks today and start creating comprehensive business plans with our easy-to-use tools. Empower your business with accurate financial insights and drive success with confidence.
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