The Three Financial Reports Every Business Owner Should Review Monthly

Financial reports are only helpful if you understand them. Reviewing three core reports each month can dramatically improve clarity and confidence.

Profit & Loss (P&L)

The P&L shows income, expenses, and profit over a period of time. It answers the question: Is the business profitable?

It helps you spot trends, rising costs, and whether growth is sustainable.

Balance Sheet

The balance sheet shows what your business owns and owes at a specific point in time.

It provides insight into financial stability and long-term health.

Statement of Cash Flows

This report explains why your bank balance changes. It’s especially important for businesses with delayed payments or insurance reimbursements.

Together, these reports tell the full financial story.

When paired with industry-specific data—like POS or EHR reports—you gain even deeper insight.