The Most Valuable Financial Reports That Are Not Your Financial Statements

The financial world is a vast universe of numbers, calculations, and analyses. However, not all financial reports are made equal. Some are more valuable than others, especially when it comes to managing your business's finances. In this blog post, we'll be discussing some of the most valuable financial reports that are not your financial statements. Let's dive in!

A/R Aging Summary First on our list is the A/R Aging Summary. This report shows who owes you money, the amount owed, and when the payment was originally due. It's like having a financial magnifying glass that lets you scrutinize your accounts receivable in detail. The A/R Aging Summary gives you a clear picture of your business's cash inflows, making it easier for you to manage your cash flow. By having this information at your fingertips, you can determine which clients need a follow-up message, ensuring that your business maintains a healthy cash flow. It's advisable to run this report at least once a week. By doing this, you can stay on top of your receivables and prevent any potential cash flow issues that could harm your business.

Sales by Customer Next, we have the Sales by Customer report. This summary isn't just a list of your customers—it's a comprehensive report that shows you how much of your sales comes from each one of your customers. Understanding your sales at a granular level can help you make informed decisions about where to focus your marketing efforts. For instance, if you find that a significant portion of your sales comes from a handful of customers, you may want to focus your marketing efforts on upselling these existing clients. Alternatively, if your sales are spread evenly across many customers, it might be more beneficial to focus on onboarding new ones. This report is a valuable tool for identifying business opportunities and strategizing your marketing efforts. It's like having a roadmap that guides you towards your sales goals.

A/P Aging Summary Finally, we have the A/P Aging Summary. Similar to the A/R Aging Summary, this report shows how much you owe each of your vendors and when your payments are due. It's a crucial tool for managing your business's liabilities and ensuring that you maintain good relationships with your vendors. By running this report on a regular basis, you can keep track of your accounts payable and ensure that you pay your vendors on time. It's a simple yet effective way of keeping your vendors happy and fostering beneficial business relationships. Remember, keeping a healthy balance between your receivables and payables is key to maintaining a healthy cash flow. So, don't overlook these important financial reports.

There you have it, some of the most valuable financial reports that are not your financial statements. By leveraging these reports, you can gain a better understanding of your business's financial health and make informed decisions that will drive your business forward. So, don't just rely on your financial statements—explore these other valuable reports and see how they can help your business thrive!