Five Key Reports for Your Business from your Favorite Orange County Bookkeeper

key financial reports for business

Patty Hansen

Each month, your accounting system yields actionable information for you to run your business better. Here are some key reports that all business owners should review every month.

1. Balance Sheet

Reviewing the balance sheet can tell you balances of your current assets and current liabilities.  Current assets should always be larger than current liabilities. If not, you may have liquidity issues.  You can also take a look at these accounts: cash, accounts receivable, and accounts payable. They should look reasonable to you based on your business history.

2. Accounts Receivable Aging (A/R)

Your A/R Aging report can alert you to who has not paid their invoice so that you can take action to collect that money.  Any balances over 30 days should trigger a collection process. The older the receivable gets, the less likely it is to be collected.

3. Accounts Payable Aging (A/P)

Hopefully, this report is clean and you are able to pay all of your bills on time.  If you have a large amount in this account, you’ll want to make sure you have the future cash to pay the bills.

4. Income Statement

The first number most entrepreneurs look at on the income statement is profit. It’s a good idea to review every account balance on this report to see if it’s what you expected. Some questions to ask yourself include:

  1. Did I generate the amount of revenue that I expected? If not, should I boost marketing for the next few months?
  2. Do all of my expenses look reasonable? Are there any numbers that look too high?
  3. Are my payroll expenses in line with what I was expecting?
  4. Which accounts caused me to generate more or less profit?
  5. What I can I do next month to improve performance and increase profit?

5. Sales Reports

There are many excellent sales reports to dive deeper into your revenue so you can see what sold and what didn’t. These five reports are very basic, but they are also key to your business. To profit from these reports, it’s up to you to take action in your business to improve your success. Would you like these reports sent to you on a monthly basis? Reach out to your Favorite Orange County Bookkeeping service, Team One Accounting for help!

Related Posts

Recession-Proof Your Small Business: Smart Moves to Make Now

By Charlotte Van Dyck | May 21, 2025

By: Charlotte Van Dyck At Team One Accounting, we know that economic uncertainty can create a lot of anxiety for small and medium-sized business owners. While no one can predict exactly when a recession might hit, preparation is key to building a resilient business that weathers the storm and emerges stronger on the other side.…

Read More

Spring is Here: Making the Most of Team Culture and Financial Planning

By Charlotte Van Dyck | May 14, 2025

By: Charlotte Van Dyck As the weather warms up and the days grow longer, many business owners start thinking about ways to invest in their team culture. Spring is a great time to balance employee morale with sound financial planning-especially if you want to support your team without putting stress on your bottom line. Start…

Read More

Celebrating Small Business Success: How Good Accounting Fuels Growth

By Charlotte Van Dyck | May 7, 2025

By: Charlotte Van Dyck At Team One Accounting, we know that May isn’t just about warmer weather and longer days-it’s also about celebrating the incredible impact small businesses have on our communities. With National Small Business Week taking place this month, it’s the perfect time to recognize the hard work, resilience, and ambition that drive…

Read More