What are the Essential Financial Reports?
By Brielle Marcoux, CPA
CEO of Easeify Bookkeeping
In this article, we’ll explore the essential financial reports in QuickBooks that every small business owner should understand and use to keep their finances in check, monitor cash flow, and make strategic business decisions.
As a small business owner, keeping track of your finances is essential for making informed decisions and ensuring long-term success. One of the most powerful tools at your disposal is QuickBooks, a robust accounting software designed to simplify financial management. But with so many reports available, it can be overwhelming to know which ones truly matter for your business.
There are three main financial reports that provide insights into your business’s performance:
Income Statement (Profit and Loss): Summarizes revenue and expenses over a specific period of time and is used to monitor profitability.
Balance Sheet: Highlights your assets, liabilities, and equity as of a specific point in time. It provides a snapshot of your business’s financial position.
Statement of Cash Flows: Tracks cash inflows and outflows to help you understand liquidity and plan for future expenses.
Two other reports that can offer valuable information for business owners are:
Accounts Receivable (A/R) Aging Report: Shows outstanding customer invoices and helps you manage cash flow by identifying overdue payments.
Accounts Payable (A/P) Aging Report: Lists unpaid bills so that you can stay on top of your vendor obligations.
It is good practice to review these reports on a regular basis. That way you can make informed decisions and identify any areas for improvement.
To run these reports in QuickBooks Online:
Log into your account
Go to the "Reports" section in the menu on the left side of your screen
Search for and select the desired report
Customize the date range
Add any additional filters
You can export reports to PDF or Excel for further analysis. Reports that you use frequently can be saved under “Favorites” making them easy to access.
ABOUT THE AUTHOR
Brielle Marcoux is a CPA and the CEO of Easeify. Headquartered in Tennessee, she specializes in working with small businesses in QuickBooks Online. She offers one-time cleanup services and monthly bookkeeping services and works closely with BWM on their bookkeeping needs too! Are you interested in cleaning up your bookkeeping act? Brielle is ready to help the BWM community! Contact her to get started!
