QuickBooks is the software of choice for a lot of small and medium-sized companies when it comes to bookkeeping, taxes and financial reports. QuickBooks has some really good report formats that can be customized as per your requirements. You may be using many of these report formats and running them from time to time. But instead of running them occasionally, it is recommended that you run them often to have a better overview of your financial situation.
Here are the reports that every business must create and run at least once in a month. These help you in understanding your current financial situation as compared to a prior period. It can also immensely benefit you in fine-tuning your financial goals and forecasting:
Profit & Loss Report: Simply put, a profit and loss report tells you whether you have made or lost money in the given period. There are some detailed formats within the Profit and Loss reports like Profit & Loss Detail which also show individual transactions within income and expense accounts.
Profit and Loss YTD will give you the profit or loss that you have made in the current financial year till date. You can also generate a comparison report which will tell you your current position as compared to the same periods in the previous years. These reports are important financial tools for planning.
Balance Sheet: Another important financial report, a Balance Sheet gives you an idea of your company’s assets, liabilities and equity. Thus, you can ascertain the value of your company. You can get customizable formats like Details which spell out the components in each account or the Previous Year Comparison which give comparative data versus last year.
Cash Flow Statement: As the name suggests, it gives you an idea of the inflow and outflow of cash and the sources for cash flow. Cash Flow Forecast helps in forecasting how you will generate future income and where will your expenses occur in the near future.
Accounts Receivables and Accounts Payables Reports: These reports tell you about your receivables and payables. In essence they tell you who owes you money as well as who you owe money to. You can take a look at the details and also opt for many targeted formats.
By going to the Reports menu in QuickBooks, you can change parameters and variables to generate more detailed reports. Running these reports regularly will help you to better devise your financial strategies while keeping the big financial picture in mind. This enhances decision making and strategic planning for the business.