Reading your monthly report in fifteen minutes
You do not need to be an accountant to get real value from your numbers. You need a few good questions, asked every month.
A monthly report is only useful if someone reads it. The goal is not to review every line, but to notice what changed and decide whether it matters.
1. How much cash do we have, and how long will it last?
Start with the bank balances, then compare them with the fixed costs you pay every month. That single ratio tells you how much room you have to make decisions.
2. Did we earn more than we spent?
Look at the bottom line of the income statement, then at the two or three largest expense lines. Most surprises live there.
3. Who owes us money, and for how long?
An aging list of receivables shows which customers are slipping. A balance that moves from 30 to 60 days deserves a phone call, not another month of waiting.
4. What changed from last month?
Put this month next to last month and the same month last year. Anything that moved sharply should have a one-line explanation.
The best report is the one that leads to a decision.
This article is general information for business owners, not professional tax or legal advice. Requirements change; confirm the details that apply to your business with a qualified accountant.