16 Types of Financial Reports Every Business Owner Should Be Monitoring by Aron Govil

As a business owner, it is important to be aware of the different types of financial reports that are available so you can track your company’s progress and make necessary changes.

Here are 16 of the most common financial reports: Aron Govil

1. Income statement:

This report shows your company’s revenues and expenses over a specific time period, usually a year. It can help you track your profitability and see where you may need to make changes.

income statement

2. Balance sheet:

This report shows your company’s assets, liabilities, and equity at a specific point in time. It can help you measure your financial stability and track your company’s growth.

3. Cash flow statement:

This report shows how much cash your company has generated and used over a specific time period. It can help you make sure you have enough cash on hand to cover expenses.

4. Profit and loss statement:

This report shows how much profit or loss your company has made over a specific time period. It can help you make decisions about where to invest your money.

5. Accounts receivable:

This report shows how much money customers owe your company for goods or services that have been provided. It can help you determine if you need to offer more generous payment terms to attract new customers.

6. Accounts payable:

This report shows how much money your company owes its suppliers for goods or services that have been received. It can help you keep track of your expenses and make sure you’re not spending more than you’re making.

7. Inventory:

This report shows how much inventory your company has on hand at any given time. It can help you make sure you’re not overstocking or under stocking goods.

8. Debt ratio:

This report shows how much debt your company has compared to its total assets. It can help you measure your financial risk and make decisions about taking on more debt.

9. Return on assets:

This report shows how much profit your company is making from its total assets. It can help you decide where to invest your money for the greatest return.

10. Current ratio:

This report shows how able your company is to meet its short-term debts obligations. It can help you avoid liquidity problems.

11. Long-term debt to equity ratio:

This report shows how much of your company’s equity is being used to finance long-term debt. It can help you decide if you need to take on more long-term debt or find new sources of financing.

12. Earnings per share:

This report shows how much profit your company is making for each share of stock that is outstanding. It can help you measure the value of your stock and make decisions about issuing new shares.

13. Price to earnings ratio:

This report shows how much investors are willing to pay for each dollar of your company’s earnings. It can help you decide whether your stock is overpriced or underpriced.

14. Dividend yield:

This report shows how much money your company is paying out in dividends compared to its stock price. It can help you decide whether to issue new shares or pay out dividends to shareholders.

15. Return on equity:

This report shows how much profit your company is making from its total equity. It can help you measure the value of your company and make decisions about issuing new equity.

16. Cash flow coverage ratio:

This report shows how much cash your company has compared to its short-term obligations. It can help you avoid liquidity problems.

Keep in mind that not all of these reports will be relevant to every business. Be sure to tailor your financial monitoring to fit the specific needs of your company. By tracking the right metrics, you can ensure that your business is on a healthy financial trajectory.

Conclusion by Aron Govil:

The financial reports listed above can help you measure your company’s financial stability and track its growth. Be sure to tailor your financial monitoring to fit the specific needs of your company. By tracking the right metrics, you can ensure that your business is on a healthy financial trajectory. Financial reports are an important tool for any business.

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