What Reports Should I Be Looking at in My Bookkeeping System?
- johnry8
- Sep 23
- 2 min read
Understanding your financial reports helps you run your business with confidence. It’s not just about compliance. These reports show you how your business is performing, help you manage cash flow, and support smarter decisions.
Many business owners either ignore their reports or feel overwhelmed by the numbers. The truth is you don’t need to be an accountant to read your reports. You just need to know which ones to focus on and what to look for.
Profit and Loss Report
Also known as the income statement, this report shows how much money your business is making or losing over a certain period.
Key things to check:
Total income versus total expenses
Whether you are turning a profit
Which expenses are the highest
How your revenue compares to previous months or years
This report is useful for tracking growth and seeing how profitable your business really is.
Balance Sheet
The balance sheet gives you a snapshot of your business’s financial position at a specific point in time. It shows what you own and what you owe.
It includes:
Assets like cash, inventory, or equipment
Liabilities such as loans or unpaid bills
Equity, which is the value left after liabilities are subtracted from assets
This report helps you understand your financial stability and is often required when applying for loans or funding.
Aged Receivables Report
This report shows which customers still owe you money and how long their invoices have been unpaid.
Why it matters:
• Helps you follow up on late payments
• Improves your cash flow
• Reduces the risk of bad debts
Staying on top of receivables keeps your income flowing and your business running smoothly.
Aged Payables Report
Just like the receivables report, but for bills you owe to suppliers.
It helps you:
• See what is due and when
• Avoid late fees or missed payments
• Manage your cash outflow more effectively
A clear view of your payables means better planning and stronger supplier relationships.
Cash Flow Report
Your profit may look good, but cash flow tells you whether money is moving in and out of your business. This report tracks your real-time cash position.
Use it to:
• Identify when you might run short on cash
• Plan for tax payments or major purchases
• Make sure you can cover your operating costs
At Rise Accountants, we often find that a healthy profit does not always mean healthy cash flow. This report gives you the full picture.
What We Recommend
Start by reviewing these reports monthly, or even weekly if your business is growing fast. Over time, you’ll get used to spotting trends, red flags, and opportunities.
If you are unsure how to read or interpret these reports, we can help. A quick walkthrough can make a big difference in how you understand your numbers.
Want to get more value out of your bookkeeping system?