Bookkeeping Tips

What Reports Should You Review Every Month?

Three reports. Ten minutes. A much clearer view of your business.

1. Profit & Loss

Look at revenue vs. last month and same month last year. Look at Gross Profit margin. Look at the operating expenses growing fastest.

2. Balance Sheet

Look at cash on hand. Look at A/R (who owes you) and A/P (who you owe). Look at credit card balances and any loan balances.

3. Cash Flow Snapshot

If you can - even informally - track net cash in vs. out for the month. Profit and cash are not the same thing, and the difference matters.

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