How to use Financial Reports in Microsoft Dynamics Business Central

Learn how to use financial reports in Business Central. This guide provides instructions on how to interpret & use various reports available.

Microsoft Dynamics Business Central is a powerful enterprise resource planning (ERP) software that helps businesses streamline their operations and improve their bottom line. Financial reports are one of the most important features of Business Central, as they provide insights into a company’s financial health.  

However, many businesses don’t know how to use financial reports in Business Central effectively. In this blog post, we will provide a step-by-step guide on how to generate and interpret financial reports in Business Central. Moreover, we will also provide some tips on how to use financial reports to improve your business’s financial health. 

Why use Financial Reports in Microsoft Dynamics Business Central?

It is essential for any business because they provide insights into the health of the company. Microsoft Dynamics 365 Business Central ERP offers a variety of financial reports that can help you track your company’s performance and make better decisions about where to allocate resources. 

There are many reasons to use financial reports in Microsoft Dynamics Business Central. Here are just a few: 

1. -They can help you track your company’s revenue and expenses. 

2. -They can help you identify areas of your business that are doing well and areas that need improvement. 

3. -They can help you make informed decisions about where to invest your resources. 

If you’re not using financial reports in Microsoft Dynamics Business Central, you’re missing out on a valuable tool for managing your business. 

How to Create a Financial Report in Microsoft Dynamics Business Central?

A financial report is a tool used by businesses to track and understand their financial health. It is very useful to track expenses, income, and profitability over time.  

Creating a financial report in Microsoft Dynamics Business Central is a simple process that can be completed in a few steps. First, log into your Microsoft Dynamics Business Central account and navigate to the Reports menu. Then,

Select one of the following types of finance reports to get the desired results.

Sr No	Types of reports	Description
1	Trial Balance	Reveals the chart of accounts, including balances and net changes. You can view a trial balance for selected dimensions or run the report at the end of an accounting period or fiscal year.
2	Trial Balance by Period	The opening balance by general ledger account, the movements in the selected month, quarter, or year, and the resulting closing balance are all represented in a robust manner.
3	Trial Balance/Budget	It shows statistics that displays a trial balance to a budget. You can view a trial balance for specific dimensions. This report should be used at the end of an accounting period or fiscal year.
4	Detailed Trial Balance	A detailed trial balance for selected general ledger accounts is displayed. By using filters, you can specify which accounts appear in the report.
5	Trial Balance/Previous Year	A trial balance is demonstrated in comparison to the previous year’s figures. You can view a trial balance for specific dimensions. This report should be used at the end of an accounting period or fiscal year. The previous year refers to the same time period one calendar year ago.
6	Financial Report	Financial reports can be used to display general ledger accounts in ways that the chart of accounts cannot. Financial reports, for example, can be used to report on key figures.
7	Consolidated Trial Balance	Displays a consolidated overview of general ledger entries for two or more companies. This is useful for reporting on consolidated financial data from multiple companies. Set Up Company Consolidation has more information.

Also Read: Finance Management with Microsoft Business Central: Web Masters 

Tips for using financial reports

It can be a great way to track the progress of your business and make sure you are on track to meet your goals. But if you’ve never used one before, they can be a bit daunting. Here are a few tips to help you make the most of your financial reports. 

1. Know your numbers.

Before you can start using financial reports, you need to have a good understanding of your business’s finances. Know your income, expenses, assets, liabilities, and cash flow. This will give you a good foundation to work from as you start using financial reports. 

2. Understand the different types of reports.

There are a few different types of financial reports that you can use, so it’s important to understand what each one is used for. The most common types of reports are balance sheets, income statements, and cash flow reports. 

3. Compare the reports from different periods to look for trends.

This will help you identify areas of concern and track progress over time. 

4. Pay attention to the footnotes.

These often contain important information about assumptions and methodology that can impact the interpretation of the data. 

Also Read: 8 Reasons to Choose Microsoft Business Central ERP

Why financial reports are important for small businesses

As a small or medium business owner, you likely wear many hats and have a lot on your plate. But one of the most important things you can do for your business is to keep track of your finances and produce regular reports. 

Financial reports can give you a clear picture of your business’s financial health and performance. They can help you make informed decisions about where to invest your resources and how to manage your expenses. Additionally, financial reports can be used to track your progress over time and compare your performance to other businesses in your industry. 

If you’re not already producing financial reports for your business, now is the time to start. Web Masters as Certified Microsoft Dynamics Partner helps you learn more about the finance module and reports in Business Central. Book your free consultation seat today!