If you think back to elementary school, every quarter or semester, a report card went to your house. This was used as a method of communication between the teacher and parents (and you as you got older). This told your standing; where you were doing well, and what areas needed improvement (mine was always art and physical education). Financial reports are very similar to a report card. They provide information to help business owners recognize how they stand, how they’re doing, where they are making profit, and what areas need improvement.
Many people don't look at their financial reports because they don’t understand them and what information they can gleam. In case you don’t know, there are 3 big financial statements: the income statement (also known as the P&L or profit & loss statement), the balance sheet, and the statement of cash flows. If you don’t know about these or how to use them within your business, I invite you to contact me! I'd love to help you get better at reading & understanding, but also figuring out what is important to look at for your business.
So if you are one who currently doesn’t look at and use your financial reports, I have good news! You can change this with a little education. Once your financial reports are ready around month end, set aside a half hour or hour and look at them. Make some business game plans and changes where you need to based on the information found in your reports. If you don’t know how to use them, then learn. Have someone who knows about them explain them to you. Don’t allow a lack of knowledge keep your business from becoming more successful. Once again, if you need help with this or anything revolving around your books, I would love to help you. You can find me here.