Financial reports make it a lot easier to understand how the business is performing, so a lot of companies post financial reports to showcase their revenue, their profits, their costs, and every sort of detail that you need to know about a company in terms of numbers. We’ve assembled a few perfect financial report samples that could be used in order for you to actually understand what an average financial report sample includes in terms of heading titles, their types, and everything around that.
Types of Financial Report Samples
There are different types of financial report samples. The most usual is a company’s financial model, and that is usually a three-statement model consisting of an income statement, which is a small Excel file that just states how much revenue you’re making or what the revenue sources are, as well as the expenses. This is kind of the core of a business. An example is the image pinned on top of this article from Berkshire Hathaway’s public documents.
If you are selling tomatoes and you’re buying from other suppliers, then you would put in your revenue how many tomatoes you sold and you would put in your costs, how much you paid suppliers. This is the basic, straightforward element of an income statement.
Cash Flow Statement
Now, when it comes to a balance sheet, it’s a bit more sophisticated, but before we talk about a balance sheet, let’s talk about the cash flow statement. The main purpose of it is really to show how much money you have at a certain state of time.
For example, you could be making, let’s say, I strike a deal with you to pay you three hundred million dollars in two years. But, you’re going to have to wait for two years in order to get that. Now, if I will cost you as a client 400 million dollars before those two years end, then you have a problem: you have a cash flow catastrophe. This is why cash flow statements are there. They’re there so that you would see if you have trouble maintaining money in the bank, per se.
Balance Sheet
Finally, the balance sheet is kind of something in between both. It takes elements from an income statement, it takes elements from a cash flow statement, and it makes sure everything is perfectly sound, as in balanced.
If you’re really confused about those three statements, you could check our other articles about three-statement models. They’re very straightforward, and they’re just lingo in the financial world to show financial experts or companies’ performance in a way that they would deem known, something that looks familiar to them.
Other Types of Financial Reports
So, this is the most common financial report sample that you could see, yet there are other financial reports that you could also stumble across. In general, a financial model sample is any sort of document, a financial report sample, is any sort of document that states something financial.
So, there might be a custom-made financial report. I could ask you, if we were following our tomato example, I could ask you that I want to know how much suppliers are costing you in detail in a financial report sample. So, your financial report sample is going to be sort of a cost analysis or a cost breakdown of your expenses. That’s also another financial report sample.
Conclusion
It all depends on what you’re looking for. These are some examples of the random financial reports that you see, but don’t limit your writing or your mind to something like that. A financial report sample, at the end of the day, could be any sort of document that has financial aspects to it, or that has numbers, costs, profits, revenue, anything that is mathematical inside of it.