Instructions for creating a simple 2024 business results report
Business performance reports play an essential role in evaluating business performance. Based on accurately compiled and analyzed data, this report template helps managers grasp the financial situation, identify strengths and weaknesses, and thereby devise appropriate development strategies. In the article below, 1C Vietnam will provide detailed instructions on how to prepare simple and quick business results reports, to effectively support effective corporate governance.
1. What is a business income statement?
A business results report is a type of general financial document that comprehensively reflects the business situation of an enterprise in an accounting period. This report shows the business's revenue, expenses, profit and loss from main business activities and other secondary activities.
A business results report is a summary showing the business performance of a business over a certain period of time. This report template is built based on the general accounting balance method, that is, based on the balance between financial items. The basis for preparing business results reports is the accounting equation:
Results (profit, loss) = Revenue (income) – Expenses
The above equation shows that the main purpose of this report is to evaluate the performance of the unit in a certain period, specifically to determine whether the unit is profitable or unprofitable.
2. Structure of business performance report
The production and business performance report is one of the important financial reports of an enterprise that helps evaluate business performance in a certain period, including three main components:
- Revenue is the total value of sales of goods, products, services and other revenues during the period. Revenue reflects a business's ability to sell products and services.
- Cost is the total monetary value of input factors used in the production and business process of an enterprise. Costs represent the level of use of input factors by a business.
- Profit is the asset that a business earns after paying for production and business costs. High profits prove that the business is operating effectively and vice versa.
3. How to prepare business results reports quickly and accurately
Making a business results report is a job that requires carefulness and accuracy. Below is some necessary information for managers to quickly and accurately create business performance tables:
3.1. Set up full targets
Indicators are quantitative or qualitative measures used to evaluate the level of achievement of goals. During the process of preparing business results reports, managers need to ensure that the following criteria are fully set:
Code | Targets | Content |
01 | Revenue from sales/services | Record total revenue from sales of goods, finished products, services and other revenues of the business during the accounting period. |
02 | The deduction from revenue | Record sales deductions, including discounts, rebates, and sales returns during the period. |
ten | Net revenue | Record net revenue from sales of goods, finished products, services and other revenues after deducting deductions during the accounting period. |
11 | Cost of goods sold | Total cost of goods sold is reflected on the income statement, including the production cost of finished products and direct costs of the volume of goods and services provided during the reporting period. |
20 | Gross profit on sales/services | Gross profit is reflected on the income statement as the difference between net revenue from sales of goods, finished products and services and cost of goods sold incurred during the reporting period. |
21 | Revenue from financial activities | Represents net financial revenue arising during the reporting period. |
22 | Financial expenses | Total financial costs are reflected, including: loan interest payable; Expenses for capital contribution to joint ventures, associations, etc. incurred during the reporting period. In particular, interest expense is a separate indicator, coded as 23. |
25 | Selling expenses | Reflects total costs incurred in the reporting period related to the sale of goods, finished products, and services. |
26 | Enterprise Cost Management | Reflects total costs incurred in the reporting period related to business management. |
30 | Revenues | Reflects the business results of the enterprise during the reporting period, including profit or loss. |
thirty first | Other income | Reflects non-business income arising during the reporting period. |
32 | Other costs | Record the total other expenses incurred in the reporting period. |
40 | Other profits | Accounting for total other expenses incurred during the accounting period. |
50 | Total accounting profit before tax deduction | Total accounting profit before tax in the reporting period. |
51 | Current corporate income tax expenses | Shows actual corporate income tax expenses incurred during the reporting period. |
52 | Deferred corporate income tax expense | Report deferred corporate income tax expenses or income arising during the period |
60 | Profit after deducting corporate income tax | Reflects the business results of an enterprise, after deducting corporate income tax expenses. |
70 | Basic earnings per share | Report basic earnings per share, excluding the impact of future instruments that could potentially dilute the value of the shares. |
71 | Diluted earnings per share | Reflects the earnings per share of common stock, after taking into account the impact of future measures that could reduce the value of the shares. |
3.2. Ensure principles of report preparation and presentation
To ensure the honesty and objectivity of the report, the preparation and presentation of business results reports must comply with the following principles:
- Performance reports must be prepared and presented in accordance with the provisions of accounting standards "presentation of financial statements" and other relevant accounting standards.
- The report must fully and honestly reflect key information related to the business performance of the enterprise. Information is considered material when it can significantly change the decisions of users of the report.
- Business results reports must accurately reflect the economic nature of transactions and operations arising, regardless of the legal form of those transactions and operations.
- The results report must be prepared and presented in a manner consistent with reality, and must be careful to absolutely limit errors in content and data.
- For lower-level member units under a common organization (Group, Corporation,...) that do not have legal status with dependent accounting, revenues, costs, profits, and losses are considered unpaid. made arising from internal transactions.
3.3. Requires information presented in the income statement
Information presented in the business results table must meet the following requirements:
- Honest and reasonable: Information must reflect the true nature, situation and business results of the enterprise, without distortion or exaggeration.
- Complete: Information must provide all necessary content for users to clearly understand the business situation of the enterprise, including information about risks and uncertainties.
- Objectivity: Information needs to be presented objectively, without bias, without emphasizing or minimizing information that is beneficial or unfavorable to the business.
- Verifiable: Verifiable information, established on the basis of reliable evidence.
- Timely: Information must be presented promptly, within the deadline prescribed by law.
- Easy to understand: Information needs to be presented clearly, easily understood, and suitable to the needs of the user.
- In addition, financial-related information in business results reports must be presented consistently, ensuring comparability between accounting periods and between businesses.
4. Latest business activity report form 2024
Currently, corporate financial report templates are applied according to two circulars: Circular 200 and Circular 133. Specifically:
The business results report form is prescribed in Circular 133 applicable to small and medium enterprises including micro enterprises, except for enterprises subject to Circular 200.
Download the Excel business results report form according to Circular 200/133 here
The business performance report form is prescribed in Circular 200 and applies to large enterprises, including small and medium-sized enterprises in specific fields.
Download the Excel business results report form according to Circular 200/133 here
Appendix form for reporting production and business results: Circular 78/2014/TT-BTc promulgating Appendix form for production and business results No. 03-1A/TNDN, for corporate income taxpayers belonging to the manufacturing, trade and service industries.
Download the Excel business results report form according to Circular 200/133 here
5. The importance of business reports for management activities
Business performance reports are an important type of financial report, helping CEOs and stakeholders better understand the financial situation of the business. Specifically, this reporting classification for management activities will play an important role as follows:
- Regular reports: Business performance reports are prepared quarterly or monthly, helping managers closely monitor the business's performance and make timely decisions. This also allows them to detect and fix small business problems, minimizing losses to the company.
- Identify costs: Business reports help managers identify future costs or any unexpected expenses that the business incurs. Through this, administrators can control costs and ensure the business operates efficiently.
- Overall analysis of corporate governance activities: The business results table provides information about the business's performance in many aspects, including revenue, costs, profits, assets, and liabilities. pay,... This is the basis for managers to analyze overall corporate governance activities and make strategic decisions.
6. Summary of questions about reporting business results
Below are some frequently asked questions that many managers are interested in when using business performance reports:
6.1. What data sources are used to prepare a business results report?
Business reports use period data sources to reflect the results of an enterprise's production activities during an accounting period. This report is prepared based on the balanced synthesis method, using data sources from accounting books, including revenue, income and expense accounts. In addition, the arising numbers of accounts of types 5 to 8 are also used to prepare business results reports.
6.2. What should you pay attention to when reading business results?
Anyone, in any position, when reading a business performance report, needs to achieve the following 3 goals:
- Understand the structure of the report, including 3 parts: Results from main business activities, results from financial activities and results from other activities.
- Grasp the information content and meaning of the indicators shown on the business performance report.
- Compare, analyze, and evaluate important indicators in the report to make comments, decisions, and forecast future trends.
6.3. How to analyze business reports effectively
Analyzing business results reports is an important job for administrators, investors, etc., allowing for an accurate assessment of the business situation of the enterprise. Here are 3 steps to take for this type of report to be analyzed effectively:
- Step 1: Group revenue and expenses
The first step is to group revenue and expenses into smaller groups to facilitate tracking fluctuations. For example, revenue can be divided into sales revenue, service provision revenue, financial revenue, etc. Costs can be divided into production costs, selling costs, and management costs. physical,...
- Step 2: Calculate density
After grouping, it is necessary to calculate the proportion of each cost in total costs and each revenue in total revenue. This proportion will help evaluate the impact of each item on the business results of the enterprise.
- Step 3: Compare with the same period
Finally, it is necessary to compare the indicators in the business performance report with the same period of the previous year to evaluate the fluctuations of these indicators. Fluctuations in indicators can reflect changes in the business activities of the enterprise.
Above are instructions for creating a simple business performance report in 2024. Hopefully this article will help businesses easily create a business performance report, thereby understanding the operating situation. business activities and make appropriate development decisions. In addition, to not miss useful information related to corporate governance, don't forget to follow other articles on 1C Vietnam's website.