When you’re running a business, it’s all too easy to overlook something which will in the end cost you more money, time, and headaches. In order to prevent this, there are a number of reports that you as a business should review regularly. Here is a list of some of them:
Profit and Loss statement – A Profit and Loss Statement or Income Statement shows you your expenditures and revenues. Ideally this report will show your budget and the variance of your budget. This should also show subtotals of your net profit and gross margin. This is basically your high level performance summery.
Cash Flow Report – A cash flow report indicates what you spent your money on last month. This is not to be confused with a P&L, which is an accrual driven report. Keeping track of your cash is key to running a good business.
Balance Sheet – Balance Sheets are summaries of your business’s total assets, liabilities, and equity at any given point in time. These are usually from the end of the accounting period, and will show a snapshot of your business’s finance position, and your resources available to your business.
Accounts Receivable Aging Report – This report organizes outstanding accounts receivable into different sections based on due date for the invoice, as well as overdue invoices in increments of 30 days. Poorly managed accounts receivable are a major source of cash problems in small to mid sized businesses. This report will help you keep track of who owes you money, and to proactively manage those accounts.
Perfect Balance Accounting Services is happy to help you keep your business’s finances in line. Our experts in taxes, finances, payroll, and accounting reports can help you keep track of what you need to know when running your business with our offices in Southeastern Wisconsin like Kenosha and Racine. Contact us today to speak to one of our accounting experts!
Perfect Balance Accounting Services advises you which reports you as a small business owner should read regularly, with experts working in Southeastern Wisconsin.