Management Reports for Small Business

As the owner of a small business, you must have reports to manage your business. Management Reports for Small Business are essential to the success of your business. They must be timely, accurate and informative – providing you the information you need to make smart decisions about your business.

There are many types of Management Reports for Small Business. Having none is a recipe for failure, but having too many can be overwhelming and lead to poor decisions. As a small business owner myself, I say there are 3 key questions that management reports must answer.

Is the Business Profitable? “Profitable” means you are able to pay yourself and your employees a decent wage. If as the business owner you cannot pay yourself a fair salary and still have the business make a reasonable profit, your business is not viable for the long-term.
What are Sales by Product? It is critically important to know especially related to question #1, which products and/or services are your big sellers and which are not, because products which only sell occasionally force you to carry expenses which you can otherwise avoid.
Do you have clear picture of your Cash Flow? As the saying goes, Cash is King. You must have a report which shows you the cash inflows (sales) and cash outflows (expenses) of your business, starting with the beginning bank account balance for the period (weekly and/or monthly) and reconciling to the ending bank account balance for the period.

image of various types of management reports for small business by oak hill bookkeeping service

The preparation of timely and accurate management reports for small business depends on timely and accurate bookkeeping. If the business bookkeeping is not completed on a regular basis, weekly at a minimum, and with careful attention to accuracy and documenting the details of all transactions, then good management reports are not possible. This is another very compelling reason you as the business owner should leave the business bookkeeping to a professional.

As small business owners ourselves, as well as having been the chief financial officer for big companies like Marvel Comics (see my LinkedIn profile), we have the experience to provide you with the right management reports so you can make timely and smart decisions about your business.