Managing Business Finances like a Pro: Utilizing Reports
Reports are a very important tool to utilize when using QuickBooks. They help keep your figures organized and accessible in a manageable format.
How do I use reports to help me?
Reports are an effective planning tool. By regularly checking your reports you can:
- Gain insight into your sales
- View your profitability
- View assets, liabilities, and equity
- Regularly monitor your cash flow
- Reports will organize the information you have “filed” away to help you see where your business stand and help keep your business running smoothly.
How can I make the most of these reports?
- Reports help you answer questions, such as which products are selling, who is buying, and who owes you money.
- Reeports can also show you how your sales compare to a previous period.
What are some important reports to look at?
- Income statements, also called a Profit and Loss or P&L, summarizes the revenue and expenses of a company over time. The income statement can show whether your business was profitable over a certain period of time (either a full year or three months).
- Balance sheets show the assets, liabilities, and equity at any given moment in time. “Current” assets and liabilities include those that have been incurred within a year.
In order to accurately look at where your company’s finances fall, reports are the most useful tool. They can be customized to your needs and can be as broad or as specific as you want.