Why Reviewing Your Financial Reports Each Month Matters

At Cross Group, we get it — running a business is busy. When you finally get a moment to breathe, the last thing you might want to do is stare at numbers on a page. But here’s the thing: taking just a little time each month to review your financial reports can make a huge difference to your business success.

If you’ve been avoiding it because you’re too busy, or because the reports feel like a foreign language, we’re here to help. Let’s start by looking at which reports you should be checking — and then we’ll share six reasons why it’s worth the effort.

The Key Reports to Check Each Month

1. Statement of Financial Performance (Profit & Loss / Income Statement)
Shows your revenue minus expenses over a set period — whether that’s monthly, quarterly, or yearly. In short, it tells you how profitable your business is.

2. Statement of Financial Position (Balance Sheet)
Shows what your business owns (assets), what it owes (liabilities), and what’s left over for you (equity).

• Assets: Cash in the bank, equipment, accounts receivable (money owed to you)

• Liabilities: Loans, credit cards, accounts payable (money you owe)

• Equity: The difference between assets and liabilities, including retained earnings and owner funds introduced

3. Accounts Receivable Ageing Report
Shows who owes you money and how overdue it is (often broken down into current, 30, 60, and 90+ days).

4. Accounts Payable Ageing Report
Shows who you owe money to and how overdue it is — crucial for keeping on top of supplier payments.

6 Reasons to Make This a Monthly Habit

1. Understand Your Business Better
A monthly Profit & Loss review lets you see your results over time. You can spot trends, compare months, and quickly pick up on anything unusual.

2. Be Ready for the Bank
If you need a loan or overdraft, lenders will ask for both your Profit & Loss and Balance Sheet. Regularly reviewing them means you’ll always have accurate, up-to-date information ready to go.

3. Get Paid Faster
Keeping an eye on your Accounts Receivable report means you can follow up overdue invoices quickly — which often means you get paid sooner and reduce the risk of bad debts.

4. Keep Suppliers Happy
Your Accounts Payable report helps you stay on top of bills, avoiding late payments and keeping those all-important supplier relationships strong.

5. Improve Your Cashflow
Knowing what’s coming in and what’s going out makes it easier to plan ahead, manage your marketing and sales activity, and ensure you’ve got cash when you need it.

6. Make Better Decisions
Your financial reports tell the story of your business. The better you understand that story, the more confident you’ll be when making decisions about pricing, hiring, growth, and investments.

Let’s Make Sense of Your Numbers

If you’re not sure which reports are most relevant to your business — or if you’d like someone to walk you through what they mean — we can help. At Cross Group, we love turning numbers into insights that actually make sense.

Your business success matters to us, and we’re here to make sure you’ve got the information you need to make the right moves.