5 Reports Successful Business Owners Review Each Month
To run a profitable business, you have to know what’s going on in your finances.
There are five key reports that will help you run your business more efficiently and make smarter decisions. From these reports, you should be able to answer some key questions about your financial state.
1. Profit and Loss by Month
When reviewing this report, look for patterns.
- What is off?
- What is increasing or decreasing, and why?
2. Profit and Loss by Percentage of Income
This report tells you where you spend your money.
- How much of the sales you’re making are going to payroll?
- How much is going to insurance?
3. Percentage of Profit by Client
- What client makes up the largest portion of your profit?
- Are you paying them enough attention? Can you spend more time with them and increase their overall value?
Remember, eighty percent of your income comes from your top 20 clients.
4. Balance Sheet This Year vs. Last Year
- Is your bank balance higher or lower compared to last year?
- Are your liabilities higher or lower?
- Do you need to consolidate loans so you’re paying less interest and increase your cash to pay other bills?
- Are your accounts receivable larger or smaller?
5. Budget vs. Actuals
- Are you on target?
- Do you need to adjust your sales goals?
- Is payroll in line with your budget?
- Do you need to hire and more importantly, can you hire?
What monthly reports are critical for your business? If you have questions about any of these reports or need help setting them up, reach out and we can help!
Our Latest Insight
Transparency has become a popular leadership principle in modern organizations. Many leaders believe that openness builds trust, strengthens collaboration, and encourages accountability across teams. In many cases, that instinct is correct. Problems can arise, however, when transparency becomes excessive or poorly timed. Effective financial strategies require a balance between honesty and thoughtful discretion. Sharing every concern, uncertainty, or early-stage idea can sometimes create confusion rather than clarity. Understanding where transparency helps and where it may unintentionally harm morale allows leaders to communicate in ways that support stability, confidence, and thoughtful decision making.
Many entrepreneurs begin their journey with relentless energy and determination. Early-stage companies often rely on fast decisions, constant experimentation, and founders who personally handle countless responsibilities. As companies grow, however, the same approach can begin to create friction. Teams expand, operations become more complex, and expectations shift. Effective leadership styles must evolve to match the changing needs of the organization. Scaling a company does not mean abandoning what made a founder successful. It requires refining those strengths while developing new leadership capabilities that support sustainable growth.
Every business experiences fluctuations throughout the year. Some industries see demand surge during certain seasons and decline during others. While these cycles are common, the financial pressure that arrives during slower months can feel overwhelming without preparation. Strong small business accounting plays an essential role in navigating these shifts. When owners understand their financial position and take proactive steps before revenue dips, they gain more control over how their organization performs during quieter periods. Preparing early creates stability. A thoughtful checklist allows entrepreneurs to review expenses, strengthen cash flow planning, and position their company to remain resilient even when sales temporarily decline.
