Top 5 Reports Every Business Owner Should Review Monthly
Running a business without reviewing your financial reports is like driving without a dashboard—you might move forward, but you won’t know how fast you’re going or whether you’re heading in the right direction. QuickBooks makes it easy to generate detailed reports that reveal your company’s financial health, but many owners overlook them or check them too infrequently. Reviewing these five reports every month can help you stay proactive, not reactive.
1. Profit and Loss Statement (P&L)
This report shows income, expenses, and overall profitability. Comparing it month-over-month highlights trends—like rising supply costs or seasonal sales dips. Focus on gross margin and net income to ensure your business is staying profitable after operating expenses.
2. Balance Sheet
Your balance sheet is a snapshot of what your business owns and owes. Assets, liabilities, and equity should balance perfectly. Tracking this monthly helps you monitor debt levels, working capital, and overall stability.
3. Accounts Receivable Aging Report
Late payments are one of the biggest threats to small-business cash flow. This report lists unpaid invoices by customer and age (30, 60, 90+ days). Following up on overdue accounts promptly can dramatically improve liquidity.
4. Cash Flow Statement
Profit doesn’t always equal cash. The cash-flow statement reveals where money actually goes—operating activities, investing, or financing. If your P&L looks strong but your cash is low, this report will show you why.
5. Sales by Product or Service Summary
Knowing which products or services drive the most revenue helps you allocate marketing and inventory budgets effectively. Combine this report with expense data to assess true profitability by category.
Pro Tip:
Use QuickBooks’ “memorized reports” feature to save filters and date ranges, so you can run these with one click each month.
Regularly reviewing these reports transforms your bookkeeping into a decision-making tool. Instead of waiting until tax season, you’ll spot issues early, stay organized, and steer your business with clarity and confidence.