(17) What is business reporting and why it is important?
Answer:
- Business Reporting includes (i) public reporting of operating and financial data by a business enterprise (ii) regular input of information to decision-makers within an organization to help them for their work.
- Implementation involves Extract, Transform, and Load (ETL) procedures in coordination with a data warehouse and then using one or more reporting tools.
- Reports can be distributed in various modes such as print form, through email or accessed via a corporate intranet.
- Wide range of reporting is conducted such as financial, regulatory and environmental, social, and governance (ESG) reporting, integrated reporting etc.
Importance of
Business Reporting:
- Business reporting allows organizations to present a consistent explanation of their business performance.
- Business reporting helps the organization to be engaged with internal and external stakeholders such as employees, shareholders, customers and regulators.
- Business reporting is crucial for stakeholders to assess organizational performance and make informed decisions with respect to an organization’s capacity to create and preserve value.
- High-quality reporting is effective in reducing the risk for lenders and thus lowers the cost of capital.
- Reports with high quality promote more effective and better internal decision-making.
- High-quality information is essential to the successful management of the business, and is one of the important factors of sustainable organizational success.