The school financial report provides an analysis of the financial condition of the school over a year’s period of time. It lists down the expenses incurred by the school, the available cash in hand, and any loss if incurred by the school. Through the financial report, it becomes very easy to determine whether the expenses of a current period were more than the budget or were they in line with the available budget. And if they were more by which amount were they exceeding and what expenses done by the school has led to this result. It also helps the school to know how much revenue has been generated over the year.
If a school did not have its financial report it would never be able to know that where all its money has been spent as humanly it is not possible to remember the list of expenses you have incurred. The financial report helps to know whether the expenses were met within the allotted budget or were higher than that. Moreover, it helps to discover the amount of revenue generated over a period of time which helps determine whether the expenses were more than the revenue or less than the revenue.
The financial report helps to cut down unnecessary expenses incurred over a period of time thus increasing revenue. The school management by cutting down its expenses allows the school to focus more on key areas rather than wasting time over nonproductive things.