Know the Financial Reports that Hold Valuable Information

March 28, 2019 by OSYB Staff

As a business owner, time is a valuable commodity but it is important that you gather vital information from financial reports that you may not have considered to be a priority.  Here are some of the financial reports that Intuit QuickBooks suggests you look at to get a concise picture of your financial status:

1.   Multi-Step Income Statement
   A multi-step income statement separates income into operating and non-operating categories.  This data will reveal to you the activities that are driving company profits.
2.  Profit Margin and Sales Mix
   Use the data in the income statement to generate a report on profit margin and sales mix. When you understand the profit margins of each product, you have an opportunity to change the sales mix of your products that can lead to an increase in profits.
3. Accounts Receivable
   Monitor your accounts receivable closely to ensure that a sustained cash inflow is available to operate.
4. Debt to Equity Ratio reports
   Stay on top of your debt to equity ratio and if it is increasing, work on lowering your debt load.

The time taken to look at these reports may be cumbersome but the long-term benefits are worthwhile.

For more details:  7 Commonly Ignored Financial Reports

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