The 5 reports every small business owner should read monthly
Profit & Loss is only the beginning. Here are the five numbers that tell you if your business is healthy or heading for trouble.
Most owners glance at their bank balance and call it a day. That's like driving by only watching the fuel gauge. Here are the five reports we walk every client through, every month.
1. Profit & Loss (the obvious one)
Tells you whether you made money this month. Compare to last month and the same month last year — trends matter more than the absolute number.
2. Balance Sheet
Snapshot of what you own vs. what you owe. If liabilities are creeping up while assets stay flat, something needs attention.
3. A/R Aging
Who owes you money, and how late are they? Anything past 60 days needs a call today, not next quarter.
4. A/P Aging
Same idea, flipped. Knowing what's due in the next 30 days prevents the 'oh no' moment when a big bill lands.
5. Cash Flow Statement
Where the money actually went. Profit on paper means nothing if cash walked out the door in inventory or equipment.