5 Simple Things You Can Do to Make More Money in Your Business.
If you have a small business or side hustle, it could be as simple as paying attention to “The Final Five.” These are the five reports that entrepreneurs should be looking at on a daily basis, even if only for five minutes. The Final Five helps business owners identify patterns, spot issues early and use data — not emotion — to make decisions. They are:
A profit and loss (P&L) statement, or income statement, is a financial report that details a company’s revenues, expenses, and overall profitability for a specific time period. It offers key insights into the company’s ability to generate income, control costs, and achieve profitability.
Accounts receivable (AR) refers to the money a business is owed for goods or services it has provided but has not yet received payment for. It is recorded as a current asset on the company’s balance sheet.
Accounts payable (AP), or “payables,” represents a company’s short-term liabilities owed to creditors or suppliers for goods or services received but not yet paid for. These obligations are recorded as current liabilities on the balance sheet. Additionally, “AP” can also refer to the department responsible for processing and managing these payments to suppliers and creditors.
A cash flow statement (CFS) monitors the movement of cash in and out of a company, offering valuable insights into its financial health and operational performance. The CFS evaluates how effectively a company manages its cash flow, including its ability to generate cash to meet debt obligations and cover operating expenses. As one of the three primary financial statements, alongside the balance sheet and income statement, the CFS is a key tool for analyzing a company’s financial position.
A “Sales by Client” report provides an overview of revenue generated from each individual client within a company’s client base over a specified period. This report helps businesses identify their most valuable clients, track purchasing trends, and evaluate the distribution of sales across their customer portfolio. By analyzing this data, companies can better allocate resources, tailor marketing strategies, and strengthen relationships with high-value clients to drive growth and profitability.
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