At one of my present jobs, I am required to compile a short report at the end of each week. This report is a customized summary of accounts receivable and payable as well as a list of balances on all bank accounts as of that day. Such a report serves as an up-to-date reminder of my boss’s financial status each week, enabling him to make informed decisions for the next week, month, or year! Imagine if I had not developed a weekly plan by which to notify him of balances. His decisions the following week would be out of context and potentially could cause a financial crisis in his business.
In my career as an accountant, I will use other reports that deal with finances in a business setting, such as an income statement, statement of cash flows, balance sheet. These reports are somewhat automated, however, the need may arise for me to explain the context and application of these reports to managers.
Routine reporting is vitally important because it keeps interested individuals as informed as possible, though not directly participating in the activity. Middle and top managers often need reports from lower level managers because they need to make intelligent decisions about operations and logistics. Without proper reporting, top managers will feel removed from the daily happenings of their company and will ultimately make poor judgments.
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