What is financial reporting?
Financial reporting is the preparation of a company's financial statements and related disclosures for people outside the business, such as investors, lenders, regulators and tax authorities. It follows a set framework, such as IFRS or US GAAP, and covers the balance sheet, profit and loss statement, cash flow statement, statement of changes in equity and notes.
Also calledexternal reportingstatutory reporting
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- Frameworks
- IFRS, US GAAP, FRS 102
- UK private company
- File within 9 months
- US 10-K
- 60 to 90 days after year end
How financial reporting works
Reporting starts once the close is complete and the trial balance is final. Accountants map ledger accounts to statement lines, draft the notes, such as accounting policies, revenue, leases, tax and related parties, and have the statements audited where required. The framework depends on the company: listed groups in the EU and UK use IFRS, US companies use US GAAP, and many UK private companies use FRS 102. Deadlines are set by law. UK private companies file accounts at Companies House within 9 months of their year end and public companies within 6 months. US listed companies file Form 10-K with the SEC within 60, 75 or 90 days of year end depending on size, and Form 10-Q within 40 or 45 days of each quarter end. Management reporting, by contrast, is internal and has no set format.
Common questions
What is the difference between financial reporting and management reporting?+
Financial reporting is for outside users, follows an accounting framework and is often audited. Management reporting is for people running the business, can use any format and is usually monthly.
What are the main financial statements?+
The balance sheet, the profit and loss statement, the cash flow statement and the statement of changes in equity, together with notes that explain the figures and the accounting policies.
What is disclosure management software?+
Software that links the trial balance to the draft statements and notes, so figures update when the numbers change and several people can work on the report with review and sign-off.
Software for financial reporting
WorkivaClose data linked to filings and regulatory disclosures.Profile →
CasewareAudit working papers and financial statement preparation.Profile →
SilverfinStandardised client data for compliance and advisory work.Profile →
NetSuiteCloud ERP for mid-market companies outgrowing basic accounting.Profile →Part of Accountio’s accounting technology coverage · Glossary
