Managing your business's finances often feels like navigating a stormy sea. However, by reviewing key bookkeeping reports regularly, you can chart a clear course. These reports not only identify potential issues but also spotlight growth opportunities and support informed decision-making.

1. Accounts Receivable Aging Report

An essential tool for maintaining healthy cash flow, the Accounts Receivable Aging Report breaks down unpaid invoices by age. It highlights payment delays, allowing you to address client issues proactively.

• Identify late payments in the 60–90+ day range.
• Beware of reliance on a single customer with overdue invoices.

2. Balance Sheet

The Balance Sheet provides a snapshot of your company's assets, liabilities, and equity. It's crucial for assessing business stability and making decisions about growth or risk management.

• Watch for unexplained declines in cash balances.
• Check for rising debt with no income growth.
• Monitor negative or shrinking owner equity, indicating potential issues.

3. Income Statement (Profit and Loss Statement)

Also known as the Income Statement, this report summarizes income and expenses over time. It's invaluable for understanding profitability and cost control, aiding budgeting and investment decisions.

• Detect decreasing profit margins impacting your bottom line.
• Identify unexpected increases in operating expenses that can reduce profits.
• Investigate losses despite steady sales for underpricing or high overheads.

By consistently reviewing these reports, you can proactively address red flags and recognize trends that might influence growth. If you seek assistance with bookkeeping or payroll, our dedicated support is here to help your business stay on course.