Gary Herwitz, founder of Cometrics Partners, emphasizes the importance of enhanced financial reporting for middle market companies to drive long-term profitability. The Financial Executives International (FEI) advocates for reports that include relevant information to help stakeholders understand financial performance, including cash flow and future earnings. Additionally, comprehensive management discussions and operational realities in reports can further support business leaders in managing and improving operations.

1. FINANCIAL REPORTS -
RELEVANT INFORMATION
FOR ENHANCED
PERFORMANCE
By Gary Herwitz

2. Introduction
 An experienced finance and strategic consulting
professional, Gary D. Herwitz serves as the founder
and managing partner of CoMetrics Partners, LLC.
Gary Herwitz and his team offer middle market
companies assistance with a wide range of business
enhancement activities, such as improved financial
reporting to stimulate long-term profitability.
While there a number of ways in which companies
can generate more effective financial reports,
Financial Executives International (FEI) explains that it
is especially important for such reports to include
relevant information that helps stakeholders
understand the company’s financial performance,
position, business prospects, and risks.

3. Financial Reports
 The FEI states that many stakeholders want financial reports
to shed light on expected return on investment (ROI) by
divulging information that can be used to evaluate cash flow
and future earnings.
According to the FEI, financial statements typically explain a
company’s positions and financial results, but often deliver
less information on what is driving performance and value.
Business leaders need data that they can use to manage and
improve business operations; a comprehensive management
discussion and analysis, or MD & A, can provide such data.
The FEI notes that business leaders can also benefit from
reports that focus on operational reality, and that more
nonfinancial information in reports can facilitate operational
improvements.