As a small business owner, it’s important to monitor your financial performance regularly to ensure that your business is on track and making progress towards your goals. Here are five monthly reports that every small business should monitor: 

1. Profit and Loss Statement: This report summarises your revenues, expenses, and net income over a specific period of time, typically a month. By reviewing this report regularly, you can identify trends in your revenues and expenses and make adjustments as needed to improve profitability. 

2. Cash Flow Statement: This report shows the flow of cash in and out of your business over a specific period of time. By monitoring your cash flow regularly, you can ensure that you have enough cash on hand to meet your business’s financial obligations and make necessary investments.

3. Accounts Receivable Aging Report: This report shows how much money your customers owe you and how long those amounts have been outstanding. By reviewing this report regularly, you can identify customers who are late in paying and take appropriate action to collect overdue payments.

4. Accounts Payable Aging Report: This report shows how much money you owe to your vendors and how long those amounts have been outstanding. By reviewing this report regularly, you can ensure that you are paying your bills on time and avoid late fees or other penalties.

5. Budget vs. Actual Report: This report compares your actual revenues and expenses to your budgeted amounts for the same period. By monitoring this report regularly, you can identify areas where you are over or under budget and make necessary adjustments to stay on track. 

By monitoring these five reports regularly, you can gain insight into your business’s financial performance and make informed decisions to improve profitability and ensure long-term success.

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