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
Construction plans
by Annabel Barnes 17 April 2025
Let's talk about something that might make your head spin but is crucial for your business – VAT. Don't worry, we're going to break this down into bite-sized, digestible pieces that'll help you navigate the complexities of VAT in construction.
Man sorting finances
by Annabel Barnes 3 April 2025
Technology is advancing at an unbelievable pace and it’s my job as a bookkeeper to ensure we’re keeping up with the times. We’re always looking into new ways to improve how we work in order to save time for our clients. Over the years I’ve seen so many changes to software within the industry so I thought I’d talk to you about why we use the software we use and what you should consider when choosing your accounting software.
by Annabel Barnes 19 March 2025
Making Tax Digital for Income Tax is HMRC's initiative to digitalise the UK tax system, making it more efficient, effective, and easier for taxpayers to get their tax right. It's part of the government's wider digital transformation strategy
by Annabel Barnes 5 March 2025
Let's talk about why this amazing cloud technology isn't just about keeping up with the times – it's about transforming how we work together and understand our numbers.
team meeting
by Annabel Barnes 20 February 2025
Managing payroll is a critical aspect of running a successful business. It ensures that your employees are paid accurately and on time, which is essential for maintaining morale and compliance with legal obligations
by Annabel Barnes 4 February 2025
In this blog, you’ll discover why partnering with a professional bookkeeper is essential for managing CIS effectively and ensuring your business remains compliant.
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.
More posts