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The Top Financial Reports Every Business Owner Should Review Monthly

27 June 2024

Editor: ET

As a business owner in Singapore, staying on top of your company's financial health is crucial. Regularly reviewing key financial reports helps you make informed decisions, manage cash flow, and identify potential issues before they become major problems.

Here are the top financial reports every business owner should review monthly to ensure their business is on the right track.

1. Profit and Loss Statement

Also known as the income statement, the profit and loss statement provides a summary of your company’s revenues, expenses, and profits over a specific period. Reviewing this report monthly allows you to track your business’s profitability and understand where your income is coming from and where your money is going.

Key Insights:

  • Revenue Trends: Identify which products or services are performing well.

  • Expense Management: Pinpoint areas where you can reduce costs.

  • Profit Margins: Monitor your profit margins to ensure sustainability.

2. Balance Sheet

The balance sheet offers a snapshot of your company’s financial position at a specific point in time. It includes your assets, liabilities, and equity. Reviewing this report helps you understand your company’s net worth and financial stability.

Key Insights:

  • Asset Management: Evaluate the value of your assets and how they are being utilized.

  • Liability Monitoring: Keep track of your debts and obligations.

  • Equity Analysis: Understand the owners' equity in the business.

3. Cash Flow Statement

The cash flow statement shows the inflow and outflow of cash within your business. It is divided into three sections: operating activities, investing activities, and financing activities. Reviewing this report monthly ensures you have a clear picture of your cash position.

Key Insights:

  • Operational Cash Flow: Assess if your core business operations are generating enough cash.

  • Investment Activities: Track cash spent on and generated from investments.

  • Financing Activities: Monitor the cash flow from loans, repayments, and equity financing.

4. Accounts Receivable Aging Report

This report breaks down your receivables by customer and by the length of time an invoice has been outstanding. Reviewing this report helps you manage your credit policies and ensure timely collections.

Key Insights:

  • Outstanding Invoices: Identify overdue accounts and take action to collect payments.

  • Customer Credit Risk: Assess the creditworthiness of your customers.

  • Cash Flow Impact: Understand the impact of receivables on your cash flow.

5. Accounts Payable Aging Report

Similar to the accounts receivable aging report, this report categorizes your payables by vendor and the length of time an invoice has been outstanding. Reviewing this report helps you manage your cash outflows and maintain good relationships with suppliers.

Key Insights:

  • Outstanding Payables: Identify overdue bills and prioritize payments.

  • Vendor Relationships: Ensure timely payments to maintain good supplier relationships.

  • Cash Flow Management: Plan your cash outflows to avoid liquidity issues.

Regularly reviewing these key financial reports provides valuable insights into your business’s financial health and helps you make informed decisions.

For personalized assistance in managing your financial reports and ensuring compliance with Singapore’s financial regulations, consider consulting with the experts at Their experienced team can guide you through the complexities of financial management and help optimize your business strategies.

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