Part 6 of “What does a Bookkeeper really do?” Monthly Financial Reports and Consultation

Your accounts not balancing can be a nightmare for a business owner. That’s what a Bookkeepers is for, so you don’t have to worry about it. 

At the end of each month after all of the bank beconciliations are done, invoices entered, and bills are paid it is time to run reports. 

The three main reports are 

The Balance Sheet

·        Indicates what you: Own , who you OWE and what is left OVER

·        The balance sheet is a snapshot representing the state of a company's finances at a moment in time.

Income Statement or Profit & Loss

·        The Income Statement is one of a company’s core financial statements that shows their profit and loss over a period of time.  The profit or loss is determined by taking all income and subtracting all expenses.

·        The statement is divided into time periods, the most common is monthly.

Statement of Cash Flows

·        The statement of cash flows acts as a bridge between the income statement and balance sheet by showing how money moved in and out of the business.

·        Operations cash flow typically include the cash flows associated with sales, purchases, and other expenses.

·        Cash flow from investing activities includes the acquisition and disposal of non-current assets and other investments not included in cash equivalents.

·        Financing cash flows typically include cash flows associated with borrowing and repaying bank loans and issuing and buying back shares.

Your Bookkeeper should not only be presenting you with the reports monthly, but also consulting with you on any trends they see. Things such as increase or decrease in profit or trends you should be watching out for. These are all things Business owners need to know but don’t know how to look for. 

Contact me to get started working to get your business moving forward.