A financial report is an integral document that reflects the company’s financial health details.  

Now, think about what your business is worth investing in. For most of you, the answer is a definite “Yes.” However, informal communication is inappropriate in the world of handling finances.  

So, if you want to attract investors, you must be able to cater to them with relevant financial information. Are you looking for the right guide to prepare your financial analysis report that would easily attract investors? Then you are in the right place. 

In this article, we will cover the important steps to help you prepare a financial report and convey the company’s financial flow.  

Essential Steps To Write A Financial Analysis Report  

Here are a few essential steps you must follow while preparing a financial analysis report. 

1.  Include An Executive Summary  

An executive summary summarizes the key points of the report. In the first section of your report, your executive summary must comprise the key results drawn from it.  

The summary will help the investors view the financial audit that will be taking place in the upcoming financial year.  

Create a simplified summary, including the following points: 

Company’s mission. 

Current financial performance, 

Financial audit of the previous year. 

Profit incurred. 

Profit history. 

Market situation. 

Industry overview. 

Situation of the competitive market.  

Expected outlook. 

To encapsulate the data represented in the report, specify the implications of those financial statistics for your business.  

Furthermore, if you need help to compile the information, you can learn from professional essay writing services. The platform will assist and guide you in making the right data entry and establishing your financial reports on time.  

2. Provide a Company Overview  

After your executive summary, the first thing that comes under the main report is your company’s overview.  

This is like what you mention in a business plan. Generally, investors rely on your company’s overview to understand the competitive edge. 

Specifies these details in the company overview: 

Company mission and vision.  

Tagline or slogan, if any. 

Product and service offering. 

Major competitors. 


Marketing forecast. 

Target market. 

Business structure. 

Future goals. 

You can initiate it by reviewing the yearly or quarterly activities, statements, and financial data. In addition to that, you need to specify published business studies and industry-specified trade journals.  

We suggest you use Porter’s Five Force Analytical Model to analyze competitors in the same market.  

3. Mention The Sales Forecast  

For the main content, you need to be comprehensive and precise. Thus, you need to organize the data and make some calculations all by yourself. 

For example, when you start your calculation, begin with the sales forecast. Next, collect the sales data for the past three years before you organize the financial reporting.  

Furthermore, tally the data on a monthly and followed by yearly basis. You can also mention quarterly data based on the past two years’ calculations. Thai will help the investor view a comparison between the present and past year financial figures.  

Furthermore, in the next section, you need to mention the following: 

Expense budget: This will ensure your marketing budget and the fixed cost.  

Cash flow statement: the summary will mention cash inflow and cash outflow from the company. You need to be precise in this statement as you need to deliver your profit and loss statement in the next section.  

Estimate assets and liabilities: The next step is calculating the company’s net worth. You need to manage the assets, liabilities, and items not appearing in the profit loss statement. 

Break Even Point: Mention a business expanse that matches the sales volume. A three-year sales forecast will help to find the break-even point.  

4. State Company’s Valuation  

The company’s valuation is one of the most important sections of the financial analysis report.  

Do you know why? This is because it assists potential investors in visualizing the value of investing in the company.  

You make calculations by analyzing the company’s data, which includes all the data mentioned in the above section. There are three specified forms you can conduct the analysis: 

Relative value method. 

Discounted cash flow analysis. 

Book value analysis. 

The main objective is to outline the current liabilities and assets. The calculation in your report will help the investors determine the business stocks and current value.  

5. Perform Risk Analysis  

Risk analysis will assist potential investors in seeing your company’s investment potential and what you plan to achieve.  

You can start this with risk analysis and run it through a SWOT analysis. 

Moreover, to derive the best results, combine the information from your Pestle analysis. This analysis lets you better understand your marketing environment and other macro factors of the business’s financials.  

6. Summarize The Financial Statement 

When writing a financial analysis report, you must add a brief of the company’s financial statement. To do this, include the following section in your report. 

Income statement. 

Cash flow statement. 

Balance sheet.  

Thus, note that summarizing each component does not require including financial tables. But instead, explain what the data entry means in a paragraph format as well.  

7. Comply Regulatory Requirement  

The presence of proper regulatory compliance reporting will ensure business transparency and help you win the customer’s trust.  

With the help of these establishments, you will gain the mutual trust of the financial competitors. These usually adhere to the required compliance as per the standards and rules.  

Moreover, regular audits and verification of the financial regulations will assist in identifying deviations and addressing them to resolve risks.  

Thus, maintain transparency by clearly mentioning adherence to regulatory guidelines with financial reports. Thereby, this will instill confidence among the stakeholders.  

Summing Up  

Technological advancement is creating an effective transformation within financial reporting.  

Moreover, you need to develop certain effective decision-making capabilities to witness an empowered business’s emerging advancement. This will help you generate accurate and clear reports.  

By now, you have a clear understanding of the values of your business and how to write one.  

It will not only offer investors a good reason to make an investment but also help you review the financial health status of the business.  

You only need to mention the company overview, calculate the sales forecast, and other essential requirements. Thus, you can perform the company’s valuation and risk analysis effortlessly using the steps mentioned above.