Growth Circle5 Financial Reports Every Business Owner Should Review
The five reports that give a business owner a real view of performance, cash and risk.
You do not need dozens of reports. These five cover most of what an owner needs to know.
1. Profit and loss statement
Shows income, costs and profit for the month and the year so far. Look at margins, not just totals.
2. Balance sheet
Shows what the business owns and owes. Watch loans, receivables, stock and payables.
3. Cash-flow statement
Shows where cash came from and where it went. It explains why profit and bank balance can differ.
4. Receivables and payables ageing
Lists who owes you and whom you owe, by how long. Overdue receivables are often the biggest cash drain.
5. Budget versus actual
Compares what you planned with what happened. Even a simple budget helps you see where costs are drifting.
How often
Review monthly, ideally within the first ten days after month-end. Reports that arrive late cannot change decisions.
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