Financial reporting

What are the basic reports?

Published

The five, and their questions

ReportAnswersIts glossary page
Income statementAre we profitable? From where?With Al-Waha worked in full
Balance sheetWhat do we own and owe?With six computed ratios
Cash flow statementWhere did cash go despite profit?With the −9,000 case
Receivables ageingWho is late, and by how much?The ageing table on the AR page
Trial balanceAre the books sound beneath all of the above?With the four errors it can't catch

They stack: the trial balance verifies the base, the statements read on top of it, and the ageing runs operationally, even daily.

A monthly half-hour routine

1. Trial balance (5 min): odd-signed balances? jumps vs last month?2. Income statement, comparative (10 min): margins, not figures - what did 41.7% become?3. Balance sheet (5 min): inventory, receivables, owner's current - the three that swell silently4. Cash flow (5 min): is operating positive?5. Ageing (5 min): who crossed 30 days, and what happens about it tomorrow?

The rule: a report read six months late is not a report but an archive - the whole value is regularity and comparison.

Frequently asked questions

If I read only one report, which?

The monthly income statement against the prior month - its questions will drag you to the rest on their own.

System-standard reports, or build my own?

The five above are one click in any sound system - hand-building is reserved for custom analysis (cost centres, product lines).

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