Definition

financial reporting

This definition is part of our Essential Guide: A guide to using Excel as financial accounting software
Contributor(s): Emma Snider

Financial reporting is the process of producing statements that disclose an organization's financial status to management, investors and the government. 

In the United States, the four basic reports are balance sheets, income statements (also referred to as profit and loss statements), cash flow statements and statements of shareholders' equity.

All public companies in the U.S. are mandated by the Securities and Exchange Commission (SEC) to tag financial statements using eXtensible Business Reporting Language (XBRL). While the deadline is still a moving target, the United States is currently working to merge the Generally Accepted Accounting Standards (GAAP) with the International Financial Reporting Standards (IFRS) to create new financial reporting standards.

While financial statements can be compiled using Microsoft Excel, experts recommend automating the financial reporting process by either using an enterprise resource planning (ERP) system's finance module or industry-specific financial reporting software. Most specialty products include an XBRL tagging engine, which analysts say reduces manual labor.

This was last updated in July 2013

Continue Reading About financial reporting

PRO+

Content

Find more PRO+ content and other member only offers, here.

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchManufacturingERP

SearchSAP

SearchOracle

SearchBusinessAnalytics

SearchContentManagement

SearchDataManagement

SearchCRM

Close