Financial reporting is more than just a regulatory requirement; it’s a powerful tool for institutions to communicate their value and impact to stakeholders.
According to Peter Ssenyange, the Chief Financial Officer of PostBank Uganda Ltd, “Financial statements tell you what happened. Integrated reports tell you who we are, where we’re going, and why it matters to Uganda.”
It is important to note that this statement by Ssenyange highlights the significance of integrated reporting in telling a more comprehensive story about an institution’s performance and its contribution to the broader economy.
Why Integrated Reporting Matters
Ssenyange contends that integrated reporting is a holistic approach to reporting that combines financial and non-financial information to provide a more complete picture of an institution’s performance.
He notes that, for instance, by adopting this approach, PostBank has been able to:
Tell a uniquely Ugandan story
PostBank’s integrated reports, Ssenyange notes, reflect the bank’s mission to foster prosperity for Ugandans and contribute to the country’s development.
Align with national priorities
He reveals that the bank’s reports are aligned with the National Development Plan, demonstrating its commitment to supporting Uganda’s growth and development.
Communicate impact
Ssenyange emphasises that PostBank’s reports are designed to communicate the bank’s impact on the economy and society, going beyond just financial performance, something every business institution should never overlook.
Benefits of Financial Reporting
He says that financial reporting is not just a compliance requirement but a strategic tool that can help institutions to achieve several objectives. Some of the benefits of financial reporting, according to Ssenyange, include;
Building trust
Transparent and comprehensive reporting can help build trust with stakeholders, including investors, customers, and regulators.
Drive accountability
Financial reporting can help institutions demonstrate their accountability and responsibility to stakeholders.
Inform decision-making
Ssenyange maintains that financial reports can provide valuable insights that inform decision-making and drive business strategy.
Lessons from PostBank’s Experience
PostBank’s experience with integrated reporting offers valuable lessons for other institutions.
Ssenyange cautions that, “Sustainability isn’t one-size-fits-all. It must reflect your local reality.”
He points out that this emphasises the importance of tailoring reporting approaches to reflect local contexts and priorities. Additionally, he stresses that the bank’s experience with the (Financial Reporting) FiRe Awards organised by the Institute of Certified Public Accountants over the years has helped refine its approach to reporting, demonstrating the value of external feedback and recognition.
Financial reporting is, therefore, a powerful tool that can help institutions communicate their value and impact to stakeholders.
By adopting integrated reporting approaches, business institutions can tell a more comprehensive story about their performance and contribution to the broader economy.
As Ssenyange emphasises, “Financial reporting isn’t just for auditors. It’s your voice, your future, your legacy as a business.”
This is because by embracing financial reporting as a strategic tool, institutions can build trust, drive accountability, and inform decision-making, ultimately contributing to Uganda’s growth and development.