What You Should Review Every Month in QuickBooks
QuickBooks is a powerful tool, but it only works if you actually look at the data. Logging in once a year for taxes isn’t enough. To keep your business healthy, you should be reviewing these three key reports every single month:
- The Profit and Loss (P&L) Statement This tells you how much money you made and how much you spent. Look for trends—did your software costs spike? Did revenue drop?
- The Balance Sheet This shows a snapshot of what you own (assets) versus what you owe (liabilities). It is crucial for understanding the long-term health of your business.
- Accounts Receivable Aging Who owes you money? If clients are late on payments, your cash flow will suffer.
Understanding these reports is the first step to financial clarity. However, seeing “Profit” on paper doesn’t always mean you have cash in the bank. To understand the difference, check out our article: Profit vs. Cash Flow: Why Both Matter