A financial reporting system is a structured set of processes and procedures which allows businesses to track, monitor, and report on their financial performance. With it, companies can accurately identify their income, expenses, assets, liabilities, and other important pieces of information in order to guide decisions, manage risks, and increase efficiency. This system helps businesses create meaningful metrics and insights based on their current finances and develop plans for their long-term fiscal well-being. In short, a financial reporting system helps ensure that companies remain financially viable and competitive in the marketplace.