Financial Reporting
Frequently Asked Questions
The three core financial statements are the income statement, balance sheet, and cash flow statement. The income statement shows a company’s revenue, expenses, and profit over a given period, usually a month, quarter, or year. The balance sheet provides a snapshot of your assets, liabilities, and equity on a specific day. The cash flow statement illustrates cash inflows and outflows, broken out by operating, investing, and financing activities. Viewed in combination, these statements offer a comprehensive view of a company’s financial health.
KPI dashboards consolidate key performance indicators (e.g., revenue growth, gross margin, customer acquisition cost, or lifetime customer value) into a visual, real-time format. They streamline financial reporting by highlighting trends, flagging issues early, and aligning metrics with business goals. For example, a dashboard might track monthly recurring revenue (MRR), helping quickly assess performance without sifting through raw data. Custom dashboards tailored to your industry ensure focus on actionable insights, improving decision-making, and stakeholder reporting.
Business owners and executives should review their financial statements monthly for operational insights and quarterly for tracking against strategic goals. On the income statement, check revenue trends, cost of goods sold (COGS), administrative expenses, and net profit margins for efficiency. On the balance sheet, pay special attention to liquidity and debt levels. The cash flow statement will show whether cash is increasing or decreasing, and what activities are causing it to move.