How can I prepare my annual financial statement in a way that is understandable for external stakeholders?
August 29, 2022 | 30,00 EUR | answered by Louis König
Dear Tax Advisor,
My name is Katja König and I run a medium-sized company in the field of business consulting. In recent years, I have always prepared and analyzed my annual financial statements internally. However, now I also want to convince external stakeholders such as potential investors, banks, or suppliers of my financial situation and provide them with a transparent insight into my business numbers.
Currently, I am facing the challenge of structuring my annual financial statements in a way that is understandable for external stakeholders and that they can easily understand the financial situation of my company. I am worried that my current presentation is too complex and unclear, and that potential partners or investors may not feel adequately informed as a result.
Therefore, I am wondering how I can structure and prepare my annual financial statements in a way that is clear and understandable for external stakeholders. Are there specific key figures or graphical representations that I should use to present the most important information clearly? Which details are particularly relevant to external stakeholders and should therefore be highlighted?
I would be very grateful for your expertise and tips on how to optimally prepare my annual financial statements for external stakeholders in order to build trust and convince potential business partners of the financial stability of my company.
Yours sincerely,
Katja König
Dear Mrs. König,
Thank you for your inquiry regarding the optimal preparation of your annual financial statements for external stakeholders such as potential investors, banks, or suppliers. It is very important that your annual financial statements are clearly and comprehensibly structured so that the relevant information can be easily understood and potential partners feel well-informed.
To optimize your annual financial statements, there are various measures you can take. First and foremost, it is important that you create a clear outline and structure of your annual financial statements. This means presenting the key figures and information in a clear and organized manner, and possibly dividing them into different sections, such as an overview of your company's overall situation, an analysis of the balance sheet and income statement, as well as a forecast for the future.
Regarding the key figures and graphical representations used, I recommend focusing on the information that is relevant to external stakeholders. This includes key figures such as revenue, profit, equity ratio, leverage ratio, or liquidity. These key figures give potential investors and partners a good insight into the financial position of your company and allow them to better assess your financial stability and future prospects.
Additionally, graphical representations such as charts, tables, or graphs can help to clearly present complex relationships and developments. For example, you can visualize the revenue and profit trends of recent years with a chart, or present the current balance sheet figures at a glance with a table.
It is also important to highlight the information that is particularly relevant to external stakeholders in your annual financial statements. This could include special achievements, growth opportunities, or strategic partnerships that your company can showcase. Show your stakeholders why your company is a good investment opportunity and what benefits a collaboration with you offers.
In summary, I recommend structuring your annual financial statements clearly and comprehensibly, using relevant key figures and graphical representations, and highlighting important information for external stakeholders. This way, you can build trust and convince potential business partners of the financial stability and future viability of your company.
If you have any further questions or need assistance in preparing your annual financial statements, I am happy to help.
Best regards,
Louis König
