Why reporting is more than an obligation
Investment and loan agreements frequently stipulate that investors are to be informed regularly about the development of the company. Good reporting fulfils this obligation, but at the same time serves your own management: whoever compares plan and actual figures monthly recognises deviations early and can take corrective action in good time.
A typical occasion for our support is the situation after a first financing round, when the team is growing and the figures are available but not yet prepared in a reliable, recurring form.
Setting up reporting
Together with you, we develop a lean, repeatable reporting format based on your integrated financial planning. It should be possible to prepare it with reasonable effort, and it should give readers a clear picture in a short time.
- Plan vs. actual comparison for revenue, costs and result
- Liquidity position and expected runway of the available funds
- Selected KPIs (key performance indicators) that reflect the progress of your business model
- Milestones achieved and upcoming
- Material risks and measures
Investor Relations: communication with investors
Investor relations covers all communication with your investors: regular reports, shareholders' meetings, votes on decisions requiring approval and informal exchange. Many investors contribute experience and contacts in addition to capital, which you can make use of through targeted involvement.
Dealing with bad news is particularly important. Addressing deviations early and with a clear action plan preserves trust far more than a belated surprise.
Preparing the next round
Clean, continuous reporting is at the same time the best preparation for the next financing. The documents for the data room and due diligence (careful examination) then largely emerge from ongoing work, and existing investors can act as advocates. We help you derive the right time for follow-on financing from your liquidity planning.
This also includes defining the key figures in the reporting consistently over time. Only in this way can developments be compared, and future investors recognise that the company is in command of its figures.
Frequently asked questions
How often should we report to investors?
Monthly or quarterly reporting is frequently agreed. The provisions in your agreements and the expectations of your investors are decisive.
Does reporting replace bookkeeping?
No. Reporting builds on the data from your bookkeeping, which is kept by you or your tax adviser, and prepares it for management purposes and for investors.
Can you take over the reporting for us on a permanent basis?
We set up the structure and templates with you so that you can continue the reporting independently. Accompanying support in the initial phase is possible by arrangement.