Reporting5 min read
What Financial Reports Should a Small Business Review Monthly?
A practical monthly report checklist for owners: P&L, balance sheet, cash flow, AR aging, AP aging, sales detail, expense detail, and budget vs. actual.
Short answer
Small business owners should review a P&L, balance sheet, cash flow report, AR aging, AP aging, sales by customer or service, expense detail, and budget vs. actual if available.
Checklist
- Profit and loss.
- Balance sheet.
- Cash flow statement or cash flow review.
- Accounts receivable aging.
- Accounts payable aging.
- Sales by customer or service.
- Expense detail.
- Budget vs. actual if available.
Common mistakes
- Only reviewing the bank balance.
- Ignoring the balance sheet.
- Not reviewing overdue invoices.
- Looking at revenue growth without margin or expense context.
Examples for service businesses
- A landscaper can compare sales by service line and job costs.
- A contractor can review AR aging to chase unpaid invoices.
- A home-service company can watch payroll and vehicle expenses month over month.
Records should show progress
The IRS says good records help monitor business progress and show whether a business is improving. Monthly reports turn those records into usable information.
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