What Reports Should I Review with My Bookkeeper Every Month?
What Reports Should I Review with My Bookkeeper Every Month?
For the ongoing success and financial health of your business, regularly reviewing financial reports with your bookkeeper is essential. Monthly financial reviews provide insights into your revenue, expenses, cash flow, and overall business performance. These reviews not only help ensure accuracy and compliance but also empower you to make informed decisions that drive growth and profitability. This post outlines the key reports you should consistently review with your bookkeeper each month to keep your business on track.
Profit and Loss Statement (Income Statement)
The Profit and Loss (P&L) statement shows your business’s revenues, expenses, and net profit or loss over the month. It helps you understand whether your business is generating a profit, where money is being spent, and how expenses compare to income. Reviewing the P&L with your bookkeeper allows you to:
Track monthly and year-to-date financial performance
Identify areas where costs can be reduced or managed better
Compare actual results against your budget or forecasts
Make strategic decisions about spending, marketing, or staffing
Balance Sheet
The balance sheet provides a snapshot of your business’s financial position at month-end, detailing assets, liabilities, and equity. This report helps you assess:
Business liquidity and solvency
Changes in the value of your assets or debts
Your company’s net worth and financial stability over time
Reviewing this report monthly with your bookkeeper lets you track trends and anticipate potential cash flow issues or financing needs.
Cash Flow Statement
The cash flow statement tracks how cash moves in and out of your business during the month. It breaks down cash flows from operations, investing, and financing activities. Monitoring cash flow closely is vital to ensure your business has enough liquidity to meet obligations. Monthly reviews help you:
Manage timing of payments and receipts
Identify periods of cash shortages or surpluses
Plan for financing, investments, or expense management
Accounts Receivable Ageing Report
This report shows bills and invoices you owe, organized by due dates. Monthly review ensures you:
Pay suppliers on time to maintain good relationships
Avoid late payment fees and interest charges
Plan your cash outflows efficiently
Payroll Reports
Regularly reviewing payroll ensures accuracy in wages, tax withholdings, superannuation contributions, and related liabilities. Payroll reports help confirm compliance with employment laws and financial records alignment.
Budget vs Actual Report
This report compares your actual income and expenses against your budget or forecast, showing variances that highlight areas where your business is performing above or below expectations. Monthly follow-ups enable timely adjustments to keep your business on course.
FAQ Section
Q: How detailed should these monthly reports be?
A: Reports should be detailed enough to provide clear insights but summarized effectively for timely review and decision making.
Q: Can I review these reports without a bookkeeper?
A: You can, but reviewing with a professional ensures accurate interpretation and identification of important trends or issues.
Q: How can monthly report reviews improve my business?
A: They help detect problems early, control costs, optimize cash flow, and support strategic decision making for growth.
Reviewing key financial reports monthly with your bookkeeper is critical for financial transparency, accuracy, and proactive business management. The profit and loss statement, balance sheet, cash flow statement, ageing reports, payroll, and budget comparisons all provide vital information to keep your business financially sound and positioned for success. Partner with a trusted bookkeeping team like Gold Balance Bookkeeping to help you make sense of these reports and take confident business steps.
Ready to gain clearer financial insights and control your business finances? Contact Gold Balance Bookkeeping at goldbalance.com.au to schedule your monthly report reviews. Click the button below.
Let us guide you through the numbers so you can drive your business forward with confidence.
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