What financial reports should I review monthly?
Short Answer: At minimum, review your Profit & Loss (P&L), Balance Sheet, and Cash Flow (or cash position).
Your P&L tells you if you’re profitable. Your Balance Sheet shows what you own and owe (including hidden issues like unreconciled accounts). Your cash position tells you whether you can safely pay yourself, hire, or invest.
Common mistakes:
• Looking only at the bank balance
• Ignoring the Balance Sheet
• Not comparing month-to-month trends
What we recommend: Review reports monthly and use them to make decisions — not just to “get through taxes.”
Still have questions?
If you’re not sure what applies to your situation, we can help.