Having timely and accurate financial reports is crucial to the decision making process in your business. How can you make a smart decision if you don’t know the financial impact it will have on your business?
I am going to assume that if you are a business owner, you are at least taking a look at your Income Statement and Balance Sheet on a monthly basis. If not, check out this blog on why you should be. It is simply not wise to run your business without looking at things from a financial point.
That being said, the Income Statement and Balance Sheet are just two of the many reports that you could use to better understand your business and ultimately grow it. Let’s take a look at some of the other reports you could be using and how they can benefit your company.
1) Basic Comparative, Accrual Basis Financial Statements
What is it?
This would include the Balance Sheet, Income Statement and Cash Flow Statement being prepared on the accrual basis.
How will this help me?
Having these statement at your fingertips will help to bring financial clarity to your business and help you to make more informed decisions to facilitate growth. It will also make month to month comparison much more relevant.
2) Tax Liability Analysis Report
What is it?
Calculation of your business tax liability periodically throughout the year.
How will this help me?
Taxes are a big deal for any small business, as well they should be. At Quantify we supply this report to our clients on a monthly basis. This helps you keep track of your tax liability from your business income throughout the year so you can budget and plan accordingly.
3) Financial Ratio Analysis
What is it?
This report will show the Key Performance Indicators (KPI’s) for your business.
How will this help me?
This will help you to identify strengths and weaknesses in your business’ operations and performance.
4) Benchmarking Analysis
What is it?
This report will compare your numbers to your industry peers.
How will this help me?
Chances are you aren’t the only rodeo in town. Making sure you are running your business equal to or better than your competitors can be helpful in facilitating growth.
5) Forecasting and Budgeting
What is it?
These reports will help monitor your business performance and plan for the future.
How will this help me?
Everyone has goals for their business. Creating a budget and/or forecast will keep your business on track with its goals.
6) Job Costing
What is it?
This report shows the profitability of individual segments or specific jobs in your business.
How will this help me?
Wouldn’t it be nice to know if certain aspects of your business were much more profitable than the rest? Having this type of reporting will allow you to focus on specific segments/jobs to maximize your bottom line.
Conclusion
Hopefully this post got you thinking about the possibilities for your own business and how having proper reporting is a big deal. If you have any questions, feel free to reach out to me directly.
