Five Financial Reports Every Business Owner Should Actually Understand

Most business owners receive financial reports every month.

Many never look at them.

Others look at them and have no idea what they mean.

Report #1: Profit & Loss Statement

This tells you:

• Revenue earned
• Expenses incurred
• Profit generated

It answers the question:

“Did we actually make money?”

Report #2: Balance Sheet

This shows:

• Assets
• Liabilities
• Equity

It answers:

“What is the business worth today?”

Report #3: Accounts Receivable Aging

This reveals:

• Who owes you money
• How long they’ve owed it

It answers:

“When am I getting paid?”

Report #4: Accounts Payable Aging

This identifies:

• What bills are due
• Upcoming obligations

It answers:

“What needs to be paid?”

Report #5: Cash Flow Forecast

This predicts:

• Future cash shortages
• Upcoming tax payments
• Payroll requirements

It answers:

“Will I have enough cash?”

How Alchemy Helps

We don’t just send reports.

We explain them.

Because reports only create value when they help you make better decisions.

Ask Yourself

Could you confidently explain your last month’s financial statements to a lender?

If not, we can help. Book a discovery call today!