Which Financial Reports Should I Look At As A Business Owner?
|The reports that I would recommend looking at, and the main report that you’re going to want to use on a day-to-day basis is a Profit and Loss statement (P&L). A Profit and Loss statement, once your bookkeeping is up to date, is going to show you all the money that came in, where it came in from and what you spent it on. That’s going to enable you to do financial planning. You can see how much income is left after expenses. You can see how much profit there is. You can see what you can potentially pay yourself, or how much is left to invest.
The other report to be aware of and look at is the balance sheet. That’s going to show you what is in your various bank accounts, credit cards, loans, and any assets that you have; also, any equity that you have in your business. If you’ve paid yourself distributions, that will appear on the Balance Sheet. If you contributed financially to your company, that will be on the Balance Sheet.
If you are also sending invoices from your bookkeeping software, there is a report called an Accounts Receivable report. That is a summary view or a detailed view that is vital to review. It gives you a thumbnail view of everything owed to you and when it’s due. Another similar report for bills that you owe is the Accounts Payable report, which shows you in a thumbnail view exactly what you owe and when it’s due. Those are two useful reports for financial planning and management.
If you haven’t looked at those reports recently, I recommend you do so. And if you need your bookkeeping caught up so you can see updated reports, please don’t hesitate to reach out.
Maya Weinreb | Founder & CEO