What financial reports should I get from my bookkeeper every month?
At minimum, expect a profit and loss statement and a balance sheet every month. A cash flow statement is the third report worth requesting, though not every bookkeeper includes it by default.
The profit and loss statement shows your revenue and expenses for the month. It tells you whether you made money or lost money during that period. A useful P&L breaks down income by source if you have multiple revenue streams and categorizes expenses in a way that matches how you think about your business. “Operating expenses” lumped together is less helpful than seeing marketing, supplies, and subcontractor costs separately.
The balance sheet shows what you own and what you owe at a specific point in time. Assets on one side, liabilities and equity on the other. This report gives you the full picture of your business’s financial position, not just how the month went. Your bookkeeper should provide this as of the last day of each month so you’re looking at a consistent snapshot.
A cash flow statement tracks where cash came from and where it went. This differs from the P&L because of timing. You might show a profit but still have cash flow problems if customers haven’t paid yet or if you paid for materials before revenue came in. For bookkeeping for service based businesses and nonprofits, cash flow reports are particularly useful because billing cycles and payment timing often don’t match up neatly.
Beyond these three, other reports add value depending on your situation. If you invoice customers, an accounts receivable aging report shows who owes you money and how long those invoices have been outstanding. If you track bills before paying them, an accounts payable aging report shows what you owe and when payments are due. These aren’t always standard deliverables, but they’re worth asking about.
The reports themselves are only half the value. Numbers without context don’t help you understand what’s happening in your business. If expenses jumped 30% from last month, you should know why. If your cash balance dropped despite a profitable month, the explanation matters. Good full-service bookkeeping includes brief explanations that connect the numbers to what actually happened, not just a PDF attached to an email with no commentary.
Ask your bookkeeper what reports they provide and whether explanations come with them. The goal is walking away each month knowing how your business performed and why, not staring at numbers wondering what they mean.
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