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!