FAQ: What is a Post-Report Review?
If you have a business or have worked closely with a financial professional at any point, it’s likely that financial reports have crossed your desk once or maybe even twice. But do you truly understand what your finances are really telling you?
As a dedicated professional who has been providing reliable bookkeeping services for nearly ten years, I often wish I was not surprised by the insights and the common misconceptions that arise in respect to financial reports. Here’s the thing, I have learned over the course of my career that:
Not all financial professionals include reports as part of their standard bookkeeping maintenance
There are business owners who have never seen or pulled their own management reports
Businesses are losing money for not knowing what information their reports are telling them
To address all of the problems mentioned above, MikaesBooks includes a thorough 60-minute post-report review with each bookkeeping client. By offering this detailed review, it provides business owners the invaluable opportunity to ask questions, gain deeper insights into their financial performance, and ultimately feel more confident and informed about their overall business operations.
During a post-report review, business owners will
Learn how their business performed in the recent period. This can include reviewing profits, changes in expenses and reviewing balances for liabilities, as an example
Receive a brief rundown of any significant changes. This can include reviewing new liabilities such as a loan, confirming any transactions that may be fraudulent and confirming new contractors or employees, as an example
Have the opportunity to ask questions.
You do not need to be a financial wizard or expert to understand basic financial reports, such as a Profit & Loss statement or a Balance Sheet. Having a fundamental understanding of your financial information can significantly simplify the process of making financial decisions and executing them effectively. It is important to remember that profit does NOT necessarily equal cash flow. For small businesses specifically, effective cash flow management can make a given month feel like a leisurely walk in the park or, a challenging walk through a hurricane.
Management reports are compiled after the bookkeeping process is completed and are based on information that includes income, expenses, assets, and liabilities over a specified period of time. For most businesses, this essential process is executed on a monthly basis; however, there are also some businesses that opt for a quarterly basis due to varying levels of business activity. Creating a dedicated time to thoroughly review these reports can truly make all the difference when it comes to making important business decisions, gaining a deeper understanding of your financial standing, and so much more!
Want to learn more about how we may be able to help you? Schedule your free consultation here to learn more!
This blog is for educational purposes only. Mikaesbooks is not a tax advisor or legal professional. Seek an Enrolled Agent, EA or a Certified Public Accountant, CPA, or other tax professional for more information.
