Template: Monthly reporting

Regular reporting provides reliable transparency for the management and shareholders and thus ensures long-term trust in the success of the company.

The aim of a reporting is to provide a transparent presentation of business development for the management and the shareholders as well as other stakeholders.

  • The company's net assets, financial position and results of operations as well as the company's development are highlighted comprehensively.
  • Due to periodic focus on key topics shareholders tend to have greater confidence in the management.
  • A structured process guarantees a common understanding of company’s current situation and development within the management circle.

As a guideline for the implementation of a monthly reporting we provide a template in our download area. The template shows the core contents of a monthly reporting and serves as an example for the creation.

Recurring reports ensure transparency, trust and information security

Reports are documents created for the purpose of recurring checking and communication of the current business situation to important stakeholders. In this manner, the periodic presentation and provision of relevant factors of business development creates transparency and lays the foundation for a trusting relationship among the management and its key stakeholders. That way, information rights of shareholders, which are often contractually fixed, are also being preserved.

A comprehensibly documented set of figures and regular information on the development of sales, marketing, human resources and products acts as the basis for strategic decisions that have a major influence on the company's progress. A high quality of data makes the reporting more comprehensive and thus enables the management to perform adequate countermeasures int the case of deviations from the business plan. Thus, in most cases, regular reporting has a positive effect on long-term company development.        

Continuous accounting and regularly updated planning form the data basis for reporting

The monthly reporting template contains two parts. In the first part, all developments in the company's asset, financial and earnings position are examined using the balance sheet, income statement and cash flow statement. In order to make deviations from the plan and relevant changes during the year visible, the figures for the current month are compared with planned figures and actual figures for all accumulated months since the beginning of the year (year-to-date view). The first part of the reporting is fed by data from ongoing accounting and corporate planning (which is usually updated once a year). This raw data is supplemented by comments and explanations from the management, which indicate changes, remarkable developments or news in the figures.

The second part of the monthly reporting is the management report on corporate development. The design of this depends heavily on the organization and business model of the company, and the content diverges accordingly, depending on the industry to which the company belongs. Possible contents can be reports on the development of sales, marketing, cooperations, products and human resources. The management has the opportunity use the second part of the reporting to explain relevant changes and a present new ideas.   

Reporting throughout the year offers a transparent presentation of the business situation in addition to the annual report, which is mandatory for most legal forms. The annual report also provides information on the company's asset, financial and earnings position and presents all relevant aspects from the various business areas. The frequency of reporting during the year varies from company to company and depends not only on requirement but also on the available capacity. Basically, it is important for a company to ensure reliable, high-quality and detailed reporting, without falling into excessive bureaucracy and administration.

Recurring reporting reduces information uncertainty for shareholders and investors

The regular reporting results in an improved understanding of a company’s development. At the same time, it enhances the management to keep track of this progress, which increases their ability to justify strategic decisions even months after making them. At the same time, management's ability increases to justify strategic decisions months after having made them. The result of the reporting is thus a series of coherent documents, on the basis of which relevant company developments are rendered. Another consequence of regular reporting is the reduction of information uncertainties for shareholders and investors, which increases the chance of successful follow-up financing.

At Trustventure, we advise young companies on financial issues and offer CFO-As-A-Service. Our expertise in questions of corporate finance, planning and controlling creates transparency and security for you and your investors. Get in touch using our contact form or send us an email via office@trustventure.de.

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