Most businesses have more reports than anyone reads. A handful, read every month, tell an owner most of what matters.
Five reports, every month
- Profit and loss: are we making money, and where are costs rising?
- Cash and bank book or cash flow: where did the money actually go?
- Receivables by age: who owes us, and for how long?
- Payables: what do we owe, and when is it due?
- Stock valuation: how much money is sitting in stock, and where?
Plus, for GST
Before filing, review the GST summary for the month alongside the reconciliation with GSTR-2B. Large or unusual differences are worth a question before the return goes in.
Make them trustworthy
Reports are only as good as the documents behind them. If sales, purchases and payments are entered on time and linked to each other, the reports are ready when the month ends.