As a small business owner, it’s easy to get caught up in “doing” the business and overlook the numbers that tell you how your business is really doing.  QuickBooks is a great tool – but only if you know how to use it and which reports really matter.

Here are three reports every business owner should run regularly:

1.  Profit & Loss Statement –  This report tells you if your business is making money or experiencing a loss.  It compares your income to your expenses and shows your net profit for a given time range.  Reviewing this on at least a monthly basis helps you spot trends early.
2. Balance Sheet – This report shows your business’s financial health as of a given day.  You will see your assets (what you own), your liabilities (what you owe), and your equity (basically, what’s left over).  This is an excellent report for your bankers and investors, but more importantly, for you.  It shows if your business is building value.
3. Cash Flow Statement – Profits don’t always equal money in the bank!  You can actually be making a hefty profit, but have little money in the bank.  This report shows how money is moving in and out of your business.  Many businesses fail because they run out of money, not because they are unprofitable.

Running these reports each month gives you the control and confidence you need to run your business.  They will help you be proactive and make good decisions.  But the information that generates these reports needs to be accurate.

Ready to gain financial clarity?  I offer QuickBooks setup and training to ensure you receive the necessary information.  Let’s talk!