Quickbooks Online is a powerful tool, especially in the hands of your bookkeeper! To someone who isn’t well-versed in its functionality, it can be overwhelming. However, there are four essential reports you should be reviewing on a regular basis. Your bookkeeper can easily prepare these reports so you can have quick access to essential information about your business.
1. Profit & Loss Report
The Profit and Loss Report, or P&L, shows a summary of your Income and Expenses for a given time period. The Profit and Loss statements shows information like gross and net profit (or loss). It also shows business expenses (such as rent, payroll, and cost of goods). A P&L gives insight into cash flow, where money is coming from, and how it is used.
You may also hear it referred to as: “Income Statement”, “Statement of Operations”, “Statement of Financial Results” or “Income & Expense Statement”.
2. Balance Sheet Report
The Balance Sheet Report gives information about the assets and liabilities of a company. It also reports the shareholder’s equity in the company. An easy was to think about the Balance Sheet is that it tells us what the company owns and owes.
Using the formula “Assets = Equity + Liability”, the Balance Sheet Report gives a snapshot of the financial position for any given period.
3. A/R Aging Summary Report
The Accounts Receivable Aging Summary details all of the unpaid invoices found in your accounts receivable. It gives the length of time an invoice has gone unpaid. This report allows you to monitor the potential financial health of customers. The longer an invoice has gone unpaid, the more likely the customer’s business is suffering. Generally, this report calculates open invoices in 30 day periods.
4. A/P Aging Summary Report
Similar to the Accounts Receivable Again Summary, the Accounts Payable Aging Summary tells you what unpaid bills you have. This report can tell you who you need to pay, what you need to pay them, and when you need to pay them. Timing is crucial as paying invoices out of synch can result in unmanageable cash flow and poor relationships with vendors.
Don’t let your bookkeeping become overwhelming. Imagine how you’ll feel knowing these reports will be available to you without having to lift a finger! Hiring a virtual bookkeeper can give you the peace of mind that your financial health of your business is priority. If you are ready to make bookkeeping easy, message me to see how I can relieve this stress for you! It will be one of the easiest calls you make. We care about your success and you and we show it in our approach and customer service.