June 16, 2025
Managing finances for a business is never just about numbers, it’s about accuracy, insights and decisions, but many businesses still struggle with Excel sheets, scattered data and manually created reports. That’s where a smart reporting tool comes in. In this blog, we will discuss top 5 financial statement challenges solved by reporting tool.
1) Preparing Accurate Financial Statements is Time-Consuming
One of the top financial statement challenges is the manual preparation of Balance Sheets, Profit & Loss accounts, and Cash Flow reports. When generated directly from Tally or other ERPs, these reports often take time and can include errors.
How the Reporting Tool Solves It:
- Generate formatted financial statements directly in Excel or PDF
- Get entity-wise and consolidated reports across business units
- Handle foreign currency conversions easily using exchange rates
- Auto-map 80–90% ledgers to reporting heads with built-in rules
2) Budget Planning vs Actual Spend is Hard to Track
Firms struggle to monitor whether their actual expenses are crossing the set budgets or if revenue targets are being missed.
How the Reporting Tool Solves It:
- Upload monthly, quarterly, or yearly budgets in the tool
- Compare budget vs actuals at ledger or cost centre level
- Highlight overspending and under performance automatically
- Filter by company, group, or period for targeted analysis
3) Fund Flow Management Lacks Real-Time Visibility
A lack of real-time fund flow tracking is a common problem among the top financial statement challenges. Businesses often don’t have a clear picture of incoming payments or outgoing expenses.
How the Reporting Tool Solves It:
- Configure recurring and variable payments/receipts like salaries, loans, rent
- Get reports on upcoming vendor payments and customer receipts
- Analyze cash inflow and outflow trends to plan working capital
4) Poor Tracking of Receivables and Payables
Many firms struggle with overdue payments, delayed collections, or missed supplier dues—all affecting cash flow and credibility.
How the Reporting Tool Solves It:
- Track customer outstanding trends and overdue payments
- Identify clients with increasing payment days or overused credit limits
- View supplier payment status to avoid early or late payments
- Get bill-wise receipt day reports to track payment behavior
5) Non-Moving Inventory Blocks Cash
If inventory items don’t move, they block cash and take up storage. Among the top 5 financial statement challenges, inventory ageing is often overlooked.
How the Reporting Tool Solves It:
- Detect items not sold or used in N days
- Find customers who previously bought such items
- Plan stock clearance with customized offers
- Filter items by ageing, category, or business unit
Why Choose EasyReports
EasyReports is not just another reporting tool, it’s a smart assistant for your reporting team. With deep integration into Tally and other ERPs, use our easy-to-use dashboards, it you to:
- Reduce manual work
- Get real-time financial insights
- Improve compliance and cash flow
- Make faster decisions
We have now explored the top 5 financial statement challenges solved by a reporting tool. Whether you’re a finance manager, CFO or business owner, EasyReports helps you stay in control of your firm’s finances without spreadsheets and guesswork. Get the demo now!