Blog Layout

Top 5 Financial Reports Every Entrepreneur Needs to Review

Annabel Barnes • 27 November 2024

Top 5 Financial Reports Every Entrepreneur Needs to Review

While you focus on building your brand and driving growth for your business, staying on top of your financial health is essential to ensuring long-term success. Regularly reviewing the right financial reports can provide valuable insights into your business's performance, help you make informed decisions, and prevent potential issues. We recommend having a bookkeeper like us by your side to help you interpret the reports correctly. Understanding your numbers is crucial to future-proofing your business.


Here are the top five financial reports every entrepreneur should review:


1. Profit and Loss Statement (P&L)

The Profit and Loss Statement, or Income Statement, shows your business's revenue, expenses, and profits over a specific period.


  • Why It Matters: It helps you understand whether your business is profitable and highlights areas where you might be overspending.
  • Key Questions to Ask: Are your profits growing over time? Which expenses can you reduce without compromising quality?


2. Balance Sheet


The Balance Sheet provides a snapshot of your company’s financial position at a specific point in time, listing assets, liabilities, and equity.


  • Why It Matters: It gives you a clear picture of what your business owns and owes, ensuring your finances are balanced.
  • Key Questions to Ask: Are you carrying too much debt? Do you have enough assets to cover liabilities?


3. Cash Flow Statement


This report tracks the flow of cash in and out of your business, helping you manage liquidity.


  • Why It Matters: Even profitable businesses can struggle without sufficient cash flow. This report ensures you have enough cash to meet day-to-day obligations.
  • Key Questions to Ask: Do you have enough cash reserves for emergencies? Are your payment terms with clients and suppliers balanced?


4. Aged Receivables Report


This report lists outstanding invoices and tracks how long they’ve been overdue.


  • Why It Matters: It helps you identify late-paying clients and manage your receivables more effectively.
  • Key Questions to Ask: Who are your most consistent payers? How can you encourage timely payments from others?


5. Budget vs. Actual Report


This report compares your budgeted financial performance against actual results.


  • Why It Matters: It keeps your business goals on track and highlights discrepancies between your plans and reality.
  • Key Questions to Ask: Are you overspending in certain areas? How can you adjust your budget to reflect actual performance better?




Regularly reviewing these five financial reports ensures you stay in control of your business's financial health. At Bluebells Bookkeeping, we specialise in helping entrepreneurs like you make sense of your numbers. By reviewing these reports together we can make suggestions in order to improve your cash flow status, curb overspending and plan for the future.


Get in touch today to find out how these reports will help your business.


Book a call
Beauty salon
by Annabel Barnes 22 January 2025
Beauty is your thing—you’re passionate about making your clients feel amazing, which is why you decided to open your own salon. But let’s be honest, when you took the leap into business ownership, you probably didn’t give much thought to all the admin, paperwork, and that dreaded bookkeeping. Don’t worry, you’re not alone!
financial discussion
by Annabel Barnes 8 January 2025
The New Year is now underway and I’d love to know if you’ve given any thought to your financial planning for 2025? I cannot stress the importance of financial planning. Whether you're just starting out or a well-established business, financial planning should be one of your top priorities and here’s why.
by Annabel Barnes 23 December 2024
It’s very easy to get wrapped up in your business that you just don’t find the time for a break, even during the festive season. However, taking a well-earned break isn’t just a luxury—it’s essential for your long-term success.
by Annabel Barnes 12 December 2024
The festive period is a time of celebration, but for businesses, it can also bring unique financial challenges. From managing seasonal expenses to planning for the New Year, ensuring your business stays on track financially is key. At Bluebells Bookkeeping, we're here to help you navigate this festive period with practical budgeting tips and expert support.
by Annabel Barnes 13 November 2024
When outsourcing your bookkeeping, you don’t need to worry about remaining compliant, as we’ll have all that under control for you.
by Annabel Barnes 30 October 2024
5 Common Bookkeeping Mistakes Made in the Construction Industry
finance meeting
by Annabel Barnes 16 October 2024
Running a successful business requires more than just tracking sales and expenses. To truly thrive, you need a clear understanding of your company’s financial health. This is where our Management Accounts service comes in. Management Accounts provide detailed, timely insights into your business's financial performance, enabling you to make informed decisions and strategically guide your business toward growth.
Construction finances
by Annabel Barnes 3 October 2024
In the construction industry, where projects can span months or even years, accurate bookkeeping is not just a financial necessity; it's really crucial for operational success. Here’s why precise bookkeeping is essential for businesses in the construction industry and how Bluebells Bookkeeping can ensure your bookkeeping is accurate, consistent and you have visibility of your finances at all times.
business owner at desk
by Annabel Barnes 19 September 2024
Every business is unique and has its own set of challenges and processes to follow. However, one thing that all businesses need is accurate and up to date bookkeeping. Your bookkeeping can be the difference between your business thriving and struggling. While it might seem like just another administrative task, proper bookkeeping gives you a clear picture of your business’s financial health, ensuring you're making informed decisions.
by Annabel Barnes 5 September 2024
If you're a Sole Trader or in a Partnership, the upcoming Basic Period Reform (BPR) may affect you, especially if your accounting year-end date doesn’t fall between 31st March and 5th April. Under BPR, businesses with accounting year-ends outside these dates will need to adjust how they calculate profits for the current financial year (2023–2024) and beyond.
More posts
Share by: