subject: Why Buy Company Reports? [print this page] A company report is a comprehensive and exhaustive report on a company's activities throughout the preceding financial year. So why do them? it seems like a lot of work and time could be better spent elsewhere in the business. Well, as a company it is fundamental that shareholders and other parties are party to the operation and performance of the business, whether it be a financial development or something to do with a response to a change in the market the company operates.
As a trading company, it is of upmost importance that your shareholders and potential investors have access to the ways of working within the company and how you respond through periods of both financial and market change. This transparency helps not only to sure up current shareholders positions but also to attract in potential future investment to the company. A company report can be equated to a show and tell session, this is who we are, this what we do, this how we have done this throughout the last year and this is how much it has cost us and this is how much money we have coming into the business and our net profit is this.
Much like a well tuned race car, for those who have an interest in its success not only from a material standpoint but from a financial position too, you would like to know how the car is running throughout a racing season. Have we got the best of the car this term, are we using the best fuel? have we responded to the race teams around us should we fall behind? If so how, if not why not? What are our options? What can be implemented, brought in or removed to make the next year more successful than the last. The company report provides a platform from which these questions can start to be answered and the relevant changes made.
The report is also key to the short term running of the business, in an environment of rapid change a business needs to fully understand it's position in the market, where it's weaknesses are and where it's strengths lie, once identified they can be monitored as the year goes by allowing for a more proactive rather than reactive business. The company report provides a lasting yard stick from which to forge a better more fiscally advantageous future for the company, its importance has never been more paramount than now. The credit crunch has punished those companies that existed in a world of debt and running in the red. Closer attention to the company report on a more frequent basis may have saved a few more companies from going to the wall.
The final point on company reports is this; they are not big brother watching you and your business, they are not the teacher expecting you to get top marks every time you hand in a piece of work, the company report is the bare bones of how your business looks from the outside in, aside from all the emails and phone calls and meetings, the company report provides you and your entire business with a backbone, a position of strength from which to push off and improve.
by: Dennis Scott
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