The costly mistakes made with QuickBooks are small, but deadly
Everyone gets busy, so I understand why these reports don’t get looked at. However, the bank wants financials when you need a loan or a line of credit and so do suppliers.
The reports should be run in order to make better business decisions. Here are top 5 reports that need to be looked at regularly:
- Balance Sheet: This financial statement shows your company’s resources (cash, inventory, accounts receivable) at a glance. It’s obligations (people you owe money to, payroll taxes, credit card balances, loans). Also it’s equity (capital contributions, distributions) on a particular date.
- Profit and Loss: This statement shows the company’s health (money coming in and expenses) at a particular point in time.
- Statement of Cashflows: This financial statement harmonizes your net profit (loss) to your ending cash. There are cash transactions that do not affect your Profit & Loss, such as loan principal payments, payroll taxes payable, and capital contributions or distributions.
- A/R aging summary (if applicable)
- A/P aging summary (if applicable)