Interim Statement

An interim statement is a report used to summarize a company’s financial performance over a specified period of time. An interim report is typically prepared monthly or quarterly, whereas the final report usually occurs at the end of each fiscal year Interim statement is an important tool for businesses because it can be used to help monitor progress and make sure that everything is going according to plan. 

Benefits of an Interim Statement

Benefits_of_an_Interim_Statement Interim statements can be useful in several ways. The benefits are:

  • It allows business owners to measure the success of their investments and ensure that they are on track before making additional financial decisions.
  • These reports help businesses stay connected with supporters and boost morale within the company because it allows them to see all of the hard work being put into achieving specific goals.
  • It allows business owners to monitor their company’s financial performance so that they can adjust it accordingly.
  • It lets you monitor financial performance over time, which helps make adjustments to the business model.
  • It can be used to determine how you are performing against your competition.
  • It can help you identify any additional funding that may be required to complete a project or meet financial goals.

When Should You Use Interim Statements?

Interim statements should be used whenever a business has set out specific goals and milestones that need to be achieved to ensure that everything is going as planned. You can use it when you have a new product or service that needs to be launched. It is because, during this process, you can adjust your business model as necessary. Also, you would use this report when you are about to make a financial commitment, such as purchasing equipment or making investments. Another time to use interim statements is when you want to track the success of a business and compare its performance against other companies in similar industries. Lastly, you would use this type of report to identify whether or not your business is going in the right direction and determine if there are any adjustments that need to be made.

Steps to Write an Interim Statement Report 

Steps_to_Write_an_Interim_Statement The following steps will explain exactly what is involved in writing these types of reports:

Step 1: Compile all relevant data about sales, expenses, and income.

An interim statement report requires you to include all of the relevant data collected about sales, expenses, and income. This information should be divided into three different categories:

Step 2: Present this data in a way that is easy to read and understand.

It is important for you to format your report so that it can be easily understood by the reader, which includes: 

  • Using graphs or tables rather than long paragraphs of text.
  • Ensuring all calculations are correct and consistent throughout the document. 
  • Stating any assumptions or disclaimers at the beginning of each section (e.g., sales may increase depending on demand). 
  • Keeping an eye out for any misspellings or grammatical errors since these will need to be corrected before finalizing your interim statement reports. 

Step 3: Ensure that all figures are accurate and have been calculated correctly.

Lastly, before you finalize your interim statement report, it is important to ensure that the numbers included in each section have been accurately calculated. This means checking them against other sources if possible, such as sales records or previous financial statements

General Guidelines for Using this Type of Report 

Some general guidelines include: 

  • Using simple language when writing about financial concepts such as sales, expenses, and income
  • Making sure that you are using the correct date range (e.g., what month or quarter your report is based on). 
  • Keeping the language in your report easy to understand so that it is not misinterpreted.
  • Ensuring that you are using consistent formatting throughout, including decimal places and currency symbols where necessary. 

Sample Template for an Interim Statement Report

Below is a sample template for a condensed interim consolidated statement of profit or loss and other comprehensive income. Link for the excel file of the template: Sample Template

An interim statement reports on the financial performance of a business over time. It provides information about its sales, expenses, and income during specific periods of time (e.g., months or quarters).
This type of report can help you identify any additional funding required to complete a project or meet financial goals. It can also be used when tracking the success of a business and comparing its performance against other companies in similar industries. It is helpful for identifying whether your business is going in the right direction and if any adjustments need to be made.
You would typically use this type of report when planning on investing in assets or equipment within the next few months. It is best used when you want to compare your sales, income or expenses against other companies in similar industries. You would typically use an interim statement report to track overall performance trends for your business if you plan on investing money in assets or equipment within the next few months (e.g., a new inventory system).
There are three different types of financial statements included in an interim statement report: Profit and Loss Statement - this is used to show the business's overall performance during a specific period. Balance Sheet - this can help investors understand how much money your company has made or lost over time, whether you have more liabilities than assets (and if so, by how much), etc. Cash Flow Statement - helps determine where cash comes from and what is being spent on within the business. It also shows any changes that may occur throughout each month/quarter regarding its available cash balance.
An interim report is typically prepared monthly or quarterly, whereas the final report usually occurs at the end of each fiscal year. The most important difference between these two types of reports is that an interim statement only includes financial information for up to three months/quarters. In contrast, a final statement will include data from all 12 months to provide investors with more accurate results over time.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.