The 3 Financial Reports Every Small Business Owner Should Review Monthly

Knowing your numbers is essential for good decision-making. Three core reports provide a snapshot of your financial health: the Profit & Loss Statement (P&L), Balance Sheet, and Cash Flow Statement.

The P&L shows your revenue, expenses, and net income over a period, helping you gauge profitability. The Balance Sheet summarizes assets, liabilities, and equity—giving you a sense of financial stability. The Cash Flow Statement tracks how cash moves in and out of your business, highlighting liquidity challenges.

Reviewing these reports monthly empowers you to catch problems early, identify opportunities, and confidently steer your business forward.