Essay on Timely Financial Reporting

Timely financial reporting is the practice that most companies and business organization focus on mostly to paints a picture of how productive or unproductive the business has been in the recent past. By accurately and timely reporting of the business financial activities the company offers a good picture of the that takes within the company at every financial period. Financial reporting involves reviewing the organizations accounting and reporting practices to ensures that new method is employed in meeting the expected deadlines of doing such. This kind of reports is mainly done on a yearly basis for several purposes especially to individuals who use this kind of information, watching this sort of reporting also is critical towards securing the much-needed decisions any organisation must make concerning their present states and the future.

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Reporting financial undertakings promptly is important and a technique highly desired by companies who mostly fail to compile this kind of reports in time. Doing this has several significant benefits to the company and those of the users and the stakeholders of the enterprise. I this kind of information is highly desirable in that this sort of information is more relevant to the users and more appealing as it provides them with a chance to review their decisions regarding the company. This decision is affected immensely by the time this kind of reporting is available whether quarterly, half yearly and annually ("Timeliness of Accounting Information | Concept | Examples", 2017).

Financial reporting is timely is important to an organization as it provides the information one with the company is financially managed. Regular information of this kind is essential towards ensuring that the organization maintains or improves its financial l practices. EEAs availability of information is also crucial information that enables company stakeholders and the top managers to make the most critical decisions necessary in shaping the business ("Improving the Timeliness of Financial Reports | Government Finance Officers Association", 2017). As the enterprise makes important decisions, they can ensure that adequate and precise management of the available resources is excellent. Timely financial reporting is an essential practice that any organization should embrace as it can assist them in some ways. The first thing is that it helps them in improving future methods of timely financial reporting based on the pattern that they have chosen. As such they help the company to provide the much-needed service efficiently.

Getting a timely financial statement is important in ensuring that the business develops a strategy that can help them deal with the many problems they are facing as a group and how well they can deal with them. In doing the company can learn how to report effectively, identify sound financial staff, and learn about the great opportunities that surround them. They are also placed in a better position to provide financial functions to be in line with the objectives the organization has set. Financial reporting paves the way in ensuring the companys full potential is fully realized. This is achieved through effective communication, proper sharing of the organization's workload and establishing a calendar as to what the various staff members can do to ensure sound financial management. Rewarding employees with promotions and awards is another motivating factor that is associated with proper financial reporting.

This activity, however, has some challenges ranging from poor communication from auditors, type and size of the organization and the existing policies that govern financial reporting ("Timely financial reporting | Public Sector Group | ICAEW", 2017).

References

Improving the Timeliness of Financial Reports | Government Finance Officers Association. (2017). Gfoa.org. Retrieved 23 April 2017, from http://gfoa.org/improving-timeliness-financial-reports

Timeliness of Accounting Information | Concept | Examples. (2017). Accounting-simplified.com. Retrieved 23 April 2017, from http://accounting-simplified.com/financial/concepts-and-principles/timeliness.html

Timely financial reporting | Public Sector Group | ICAEW. (2017). Icaew.com. Retrieved 23 April 2017, from http://www.icaew.com/en/technical/public-sector/public-sector-finance/timely-financial-reporting-good-practice-exchange-175750