Compiling a municipal group’s financial statement is a complex process that demands precision, scheduling, and collaboration among various stakeholders. A well-executed process provides the municipality with crucial insights into the past year’s performance and whether strategic goals were achieved. The financial statement serves as the municipality’s annual report, addressing multiple stakeholders, including residents, decision-makers, officials, and potential new residents. Therefore, it is essential that the final financial statement is clear and leaves no room for misinterpretation. Clarity can be enhanced by focusing on the document’s visual appeal and eliminating irrelevant information.
In this blog post, we share tips for a smooth compilation process and a successful outcome.
Cheduling
The foundation of any successful project is a thorough plan and a well-structured schedule. The compilation process for the financial statement should begin with a comprehensive project plan that outlines each intermediate phase.
Create a clear and realistic schedule that accounts for all necessary steps, such as bookkeeping timelines, decision-making processes in governing bodies, content creation, and document reviews.
Adhere strictly to the schedule and ensure that all parties understand their responsibilities and complete their tasks within the set timeframe. A defined start and end date help maintain control over the process.
Structural planning – predefined outcomes
Carefully planning the document’s structure before starting the compilation process ensures that the final result is manageable and meets the municipality’s needs. A well-structured document is easy to read, with clear visuals and tables that enhance comprehension.
Stakeholders benefit from documents that are straightforward and accessible. Traditionally, financial statements are extensive and dense, but recent trends favor concise content, removal of unnecessary information, and streamlined structures. If planning the document’s structure proves challenging, reviewing financial statements from other municipalities can provide valuable inspiration and ideas.
Delegating work
Preparing a financial statement is a multi-phase process involving numerous individuals. Delegating tasks across different committees and departments helps manage the workload and reduces the burden on any single person. Sharing responsibilities also ensures that experts in specific areas contribute their expertise, minimizing redundant work.
Agree in advance on the length of each section to maintain balance and ensure uniformity across the document. While conciseness is beneficial, committee discussions and evaluations provide valuable insights into municipal activities, objectives, and achievements.
Seamless collaboration among departments such as finance, accounting, committees, and leadership is crucial. Foster an open communication culture to facilitate information sharing and problem-solving. Regular meetings can keep all parties updated and ensure that all required data is available when needed. Monitoring the project’s progress and addressing potential challenges is more effective with ongoing discussions.
Visual design
Investing time in designing the visual aspects of the document in advance can greatly enhance its readability and comprehension. A polished financial statement with graphical elements is both user-friendly and appealing.
Examples of effective visual design:
- Ensure that the color scheme, fonts, and layout align with the municipality’s brand and graphic guidelines.
- Tables are tidy and easy to read, with key figures presented through graphs and charts.
- Colors in charts and graphs adhere to the municipality’s graphic standards.
- The cover page, headers, and footers reflect the municipality’s brand and visual identity.
- Columns are balanced and consistent throughout the document.
Digitalization and automation:
Digital tools can significantly improve the efficiency of compiling financial statements. Use software that enables the automatic integration of financial data into document templates. This minimizes manual work, accelerates the process, and reduces the risk of errors. Additionally, ensure that everyone involved in the process is equipped with up-to-date software skills.
With Opiferus® Financial Documents, you can digitalize and automate all your municipality’s financial documentation. Say goodbye to the copy-paste method for financial statements, budgets, interim reports, or monthly reports. Learn more.