5 Financial Reports Every Small Business Owner Should Review Monthly

Running a small business means juggling a lot — sales, marketing, operations, and client relationships. But one thing many owners neglect each month is reviewing their financial reports.

Without regular insight into your numbers, it’s easy to miss problems, overspend, or lose growth opportunities. A Fractional CFO helps you focus on the right reports, but even a basic understanding can make a huge difference.

Here are five financial reports every small business owner should review monthly.

1. Profit & Loss (P&L) Statement

Also called an income statement, your P&L shows how much money your business earned, how much it spent, and what’s left as profit.

Reviewing your P&L monthly helps you:

• Understand your revenue trends

• Spot overspending

• Identify profitable (and unprofitable) areas

A Fractional CFO can help interpret trends and advise on actions to improve margins.

2. Balance Sheet

Your balance sheet provides a snapshot of your business’s assets, liabilities, and equity at a given time.

Checking it monthly helps you:

• See what your business owns versus owes

• Understand your financial stability

• Prepare for loans, investor meetings, or growth opportunities

3. Cash Flow Statement

Cash flow is critical — profits alone don’t keep a business running. The cash flow statement shows where money is coming in and going out.

Monthly review allows you to:

• Plan for upcoming expenses

• Avoid cash shortages

• Make better decisions on hiring or investing

A Fractional CFO can help you create rolling cash flow forecasts so you always know what’s coming.

4. Accounts Receivable & Payable Aging Reports

These reports show which clients owe money and which bills are due.

By reviewing them monthly, you can:

• Follow up on overdue invoices

• Negotiate payment terms with vendors

• Prevent late fees and interest charges

Keeping this organized ensures your business stays solvent and stress-free.

5. Budget vs. Actual Report

Comparing your actual income and expenses against your budget highlights variances that may require action.

It helps you:

• Adjust spending

• Reforecast for the next month

• Stay on track for growth goals

Monthly Review = Better Decisions

These five reports aren’t just numbers on a page — they’re your map for running a healthy, profitable business. Reviewing them each month gives you confidence, clarity, and control.

At Olly Consulting, I help small business owners not just generate these reports, but interpret them strategically.

👉 Book a free consultation today, and we’ll show you how to turn your numbers into actionable insights that drive growth.