MN Monthly Financial Statements
Offering Outsourced Monthly Financial Reports
As an entrepreneur, it’s vital to have the knowledge you need to make good business decisions. You’ll always be at a disadvantage if you don’t have that knowledge—as if running and operating a small business wasn’t difficult enough.
Financial reports are the most effective approach to learn about your company. These reports tell the tale of your company from beginning to end, from past to present to future. It’s vital to understand where your company is now and where it’s going in order for it to have a happily-ever-after.
UptoDate Bookkeeping understands how busy you are running, operating, and expanding your company. We understand that it’s a lot. Financial reports, on the other hand, are essential for running a corporation properly. They are an unavoidable aspect of running a successful business.
What is in the Reports
We’ve whittled down the reports you’ll need to review in order to save you time. You must know these three financial reports like the back of your hand, whether your company is large or tiny, whether you use bookkeeping software alone or have a complete accounting team. To keep your organization moving in the correct path, we prepare these reports on a monthly basis.
- A profit and loss statement is a financial statement that shows how much money has been made (P&L)
The income statement is another name for the profit and loss statement. This report displays income collected, expenses incurred, and profit or loss for a given time period. Businesses frequently produce these reports on a quarterly basis, but you should make it a practice to publish your P&L statement on a monthly basis.
The ideal situation is for your revenue to exceed your costs (a.k.a. a profit). That isn’t always the case, but if you don’t generate and examine this financial report on a regular basis, you won’t know you’re losing money. If you’re profitable month to month, you’re doing a fantastic job.
- Accounts Payable
A balance sheet depicts your company’s entire financial picture as of a certain date. It displays your company’s assets, liabilities, and equity—basically, what you own, owe, and how you’re financing those assets.
You can spot trends and make better financial decisions by comparing balance sheets from month to month and year to year. You’ll also be able to keep track of the liquidity and leverage ratios that lenders use to assess your company’s health.
- Statement of Cash Flow
If you’re looking at your balance sheet and wondering where all your money went, it’s time to look at your cash flow statement. This financial report records all of your cash’s ins and outs over a period of time.
This is the report you’d want to have in your back pocket if you could only glance at one report per month.
Your cash flow statement will show you if there is more money coming in than going out, which is an indication of a strong company.
Predicting future cash flow is one of the most effective uses of your cash flow statement. Estimates based on data will assist you in budgeting and making key financial decisions. If your cash flow isn’t looking so fantastic, it’s possible you’ll need to get some short-term borrowing to bridge the gap. Alternatively, you may need to reduce some of your spending.
These Three Financial Reports Can Help You
The conventional financial statement package consists of your profit and loss statement, balance sheet, and cash flow statement.
Each of these assertions, by itself, gives valuable—and often hidden—insights into the health of your company. There are very few questions regarding your company that they can’t answer when they work together. In the best-case scenario, your reports will show that your company is running smoothly and growing at a healthy rate.
In the worst-case scenario, you’ll identify serious flaws that you can address and enhance. Early detection of these flaws will allow you to make effective business actions to recuperate and recover.
That is why we prepare these reports for you on a monthly basis. You may not be able to dig yourself out of a deep, deep hole if you wait 3–4 months to assess your finances.
Don’t waste hours drowning in numbers because you’re busy. Keep these basic reports in mind. With the financial knowledge you’ll gain from these reports, you’ll have the know-how and insights you need to move your company ahead.