Monthly Reports to Review with Bookkeeper #shorts

Let's talk about what monthly reports you should be looking at with your bookkeeper when it comes to your business financials. First is your income statement or your profit and loss. That's going to be the area that has all of your revenue and expenses on there including the breakdown of expenses. That should give you a gross profit amount and a gross profit margin as well as your overhead expenses. The second report is going to be our balance sheet. This is our list of assets and liabilities that are included in our business assets being our cash, our accounts receivable, our inventory, prepaid expenses, capital assets. The third statement should be looking at is cash flow. How I look at a cash flow report. Take your balance sheet and I look at it compared to the previous period this month versus last month. I would look at that for all of my assets and liabilities. Those are the major reports that I would look at on a monthly basis with my bookkeeper.