Keeping an eye on your finances is critical if you want to run a successful business.
However, many entrepreneurs try to reinvent the wheel and overcomplicate this process with custom financial reports.
Instead, you can get all of the data and insights you need in less time if you use report templates.
In this post, we’re sharing a handful of finance report templates you can use.
- Income statement
- Balance sheet
- Cash flow statement
- Accounts receivable report
1. Income Statement
An income statement shows the company’s revenue breakdown as well as expenses and debts.
Susan Melony of Unbreak Yourself explains, “An income statement is always a useful report. As we always know, profit is the aim of every business. Thus, I consider the income statement as the financial report that can directly help in evaluating the business and forming strategies for its betterment.
Through this report, the management can assess the balance or ratio of expenses and income of a certain period. This information can help figure out the profitability of the businesses and its efficiency when it comes to incurring expenses, leading to the assessment of the strategy used, and deciding whether it is effective or not. All in all, an income statement is not just a report used in computing the revenues but it is also a strong basis of forecast and strategies.”
Tomek Mlodzki of PhotoAiD says, “It can cover a broad range of time (annually, quarterly) and can be also compared with the same report of the previous years. You can monitor the growth of your company and the months in which you need a different approach.”
For example, you can use this Xero dashboard to keep an eye on your income and expenses over time.
Rafal Młodzki of Passport-photo.online adds, “I believe that the income statement report is the one that can help a company the most. We perform it at the end of each year, and it provides us with detailed information on the activities that generate the highest profitability or those that are less profitable. It offers us a panoramic view of the company’s performance, providing relevant information for strategic decision-making.”
2. Balance Sheet
A balance sheet provides a bird’s eye of your business’s assets and liabilities (i.e. debt).
“It helps me to compare my assets and revenues and shareholder equity to determine whether I am operating at a profit or loss,” says Goodell David of Woodworking Clarity.
Daniela Sawyer of findpeoplefast.net agrees, “The financial report I rely upon the most contains balance sheets, P&L statements, cash flow statements, and net profit margin over time.
Balance sheet helps me in understanding the assets, liabilities, and company’s equity. Profit and loss statements are helpful in gaining insight into revenue generated in a specific period and I get to learn whether our sales and marketing strategies are proceeding in the right direction or not.
The cash flow statement tells about the manner in which we are conducting our transactions and how money is going in and out of the business.
Lastly, net profit margins show the efficacy of our strategies and indicate the need for improvement or alteration in different market conditions.”
Pro Tip: How to Stay on Top of the Financial Health of Your Business
Do you own and manage a small business? Then you know how much of a struggle it can be to stay on top of the financial health of your business on a daily basis. Now you can pull data from QuickBooks and HubSpot’s CRM to track your key business metrics in one convenient dashboard, including:
- Open deals and deal amounts by pipeline stage. Get sales data directly from your HubSpot CRM and track deals, deal amounts, deal stages, and dates from your sales pipeline.
- Key financial data. Track gross profit margin, open invoices by amount and by customer, paid invoices, expenses, and income from QuickBooks.
Now you can benefit from the experience of our HubSpot CRM and QuickBooks experts, who have put together a plug-and-play Databox template that helps you monitor and analyze your key financial metrics. It’s simple to implement and start using, and best of all, it’s free!
You can easily set it up in just a few clicks – no coding required.
To set up the dashboard, follow these 3 simple steps:
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3. P&L statement
While your balance sheet provides a bird’s eye view, your profit and loss statement can provide you with data on how your business is operating on a monthly basis.
“To me, the most important financial report for a business owner is the P&L,” says Robert Green. “It helps to frame performance at a substantially high perspective and if we know how to drill into the components effectively, we can drive growth and increase profitability and valuation at the same time.”
Larraine Lam of SnowboardHow adds, “A profit and loss statement, also called a P&L or P&L report, is one financial report that I’d suggest getting very familiar with no matter what type of business or organization you own or operate. This statement shows all of the incoming profit and outgoing expenses over the course of a given time period.
P&L’s are essential for tax purposes but also can help you plan and budget throughout the year.
This report can also serve as a way to document successes to see what products or services your business is selling the most of.
You can also quickly see when expenses are racking up and make decisions to tighten up the ship accordingly.
I typically keep an eye on my P&L statements once a week and would suggest looking at them at a minimum once a month. The more you understand where profits and losses stand, the better you’ll be able to keep the business on track in the short and long term.”
For example, you can use this Quickbooks Profit and Loss Overview dashboard to monitor sales and examples.
In addition, here are some additional profit and loss dashboards that you can review daily, weekly, or monthly.
4. Cash flow statement
A P&L statement is great for reviewing how profitable your business is. However, profit is only part of the equation. You also need to see how much free cash flow you have at any time. As many service-based and eCommerce businesses can attest, you can have a wildly profitable business, but still, have trouble making payroll this month. That’s where a cash flow statement can come in handy.
“Cash Flow Statement combines data from the income statement and the balance sheet to show how money flows in and out of a company,” says Jason Feldman of Immigrate Me. “The cash flow from the operations line on all financial accounts is one of the most significant for a business owner. It displays the net difference between cash that came in and cash that went out on an operating level throughout the time period listed.
Most business owners, in my experience working in banking and consulting, struggle to keep a firm grip on their cash flow. You don’t want to be concerned about how to pay your next expense. You should concentrate on expanding your company. Regularly reviewing cash flow from operations provides a clearer picture of the company’s health, allowing owners to focus on ways to improve performance.”
For example, Andrea Chapman of Nature and Bloom adds, “Ever since the pandemic began, we also resorted our tasks and responsibilities to an online format, and this includes company reports. We use Excel Online as our tool to deliver these reports to the management.
Aside from the convenience, it gives to cater information about the financial status of our business, these digital financial reports further helped us experience a real-time analysis of our performance, compare and contrast the present status to the previous ones through graphs, figures, and concept maps, and clearly classify our strengths and weaknesses in each financial aspect. Moreover, it helped us to manage the cash flow and debts easier and more organized, thus, a better understanding and a more collaborative performance from all of us, plus, it helps our company details more secured and with a reduced risk of leaking information.”
If you don’t want to create your own custom report, you can use this Stripe dashboard to keep tabs on MRR and churn.
In addition, here are some additional examples of Databox dashboards you can use to monitor cash flow.
5. Accounts receivable report
Another financial report that is particularly useful for agencies and service businesses is the accounts receivable report. This helps you see and collect unpaid invoices faster.
“Accounts receivable aging report is highly beneficial for a business or an organization,” says Eden Cheng of PeopleFinderFree. “Inefficiently managed accounts receivable is the crucial cause of a business’s cash flow issues.
Hence, it’s highly recommended for companies to detect slow-paying customer and delinquent accounts quickly. Declining any ongoing service or extra shipment requests to these customers safeguard businesses from benefitting from maintaining financial interests.
Therefore, distinguishing Accounts Receivable (AR) by the length of overdue time, such as 1-30 days, 31-60, 61-90, and 90+ days is mainly hassle-free for the businesses to work within an existing accounting system automatically. Therefore, establishing these reports help organizations take a practical approach to conduct the collections process. Companies need to compare the AR days vs. AP days metric internally.”
In sum, these are the five finance report templates that every small business should use to stay on top of its financial health.
What are financial templates? ›
Smart financial management starts with financial templates
A financial template is a great resource to generate a monthly budget, track spending, and manage your debt. Try a financial template calculator in Excel to help pay off a car loan, student loan, or credit card balance.
- Step 1 – Make a Sales Forecast.
- Step 2 – Create a Budget for Expenses.
- Step 3 – Create a Cash Flow Statement.
- Step 4 – Estimate Net Profit.
- Step 5 – Manage Assets and Liabilities.
- Step 6 – Find the Breakeven Point.
They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.What are the types of financial model templates? ›
- Profit and Loss Template. Download CFI's free P&L template and Excel file. ...
- Waterfall Chart Template. ...
- Budget Template. ...
- 3 Statement Financial Model. ...
- Cash Flow Statement. ...
- DCF Model.
Log into Microsoft Excel Online and open a blank spreadsheet. Identify the assumptions for the financial statement and create a Transactions page. Create a Profit and Loss statement that summarizes monthly transactions. Use the SUMIFS formula to populate the categories for the Profits and Loss with the transactions.What are the 5 types of financial statements? ›
- Income statement. Arguably the most important. ...
- Cash flow statement. ...
- Balance sheet. ...
- Note to Financial Statements. ...
- Statement of change in equity.
The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.What is a weekly financial report? ›
A weekly financial statement serves to help you monitor all your short-term financial activities in weekly increments. It should be created and reviewed each week and provides a comprehensive look at the short-term performance of your business.What is the most important financial statement? ›
The most important financial statement for the majority of users is likely to be the income statement, since it reveals the ability of a business to generate a profit. Also, the information listed on the income statement is mostly in relatively current dollars, and so represents a reasonable degree of accuracy.What are the 6 components of financial statement? ›
The Financial Accounting Standards Board (FASB) has defined the following elements of financial statements of business enterprises: assets, liabilities, equity, revenues, expenses, gains, losses, investment by owners, distribution to owners, and comprehensive income.
What are financial reports used for? ›
Financial reporting aims to track, analyse and report your business income. This helps you and any investors make informed decisions about how to manage the business. These reports examine resource usage and cash flow to assess the financial health of the business.How do I write a good monthly report? ›
- Visual Graphics. Wherever possible, substitute; text with a table or figure. ...
- Split Long Complicated Sentences into Short Meaningful Statements. ...
- Use a Table of Contents WITH Page Numbers. ...
- Refer to Attachments in the Body Text. ...
- Write a Strong Executive Summary.
Start the introduction with a general lead-in sentence that draws the reader's attention and makes them want to find out more about what you are writing about. Address the purpose of your report, and what it will cover.What is a financial management report? ›
A management financial report is often used to provide shareholders with updated financial progress. A management financial report is the president or chief executive's periodic review of the financial condition of a corporation.What are 6 types of financial models? ›
- Bottom-up financial forecasting. Bottom-up financial forecasting is a model that relies on current financial statements and sales data. ...
- Top-down financial forecasting. ...
- Correlation forecasting. ...
- Statistical forecasting. ...
- Delphi forecasting. ...
- Asset and liability management forecasting.
- Fashion (Editorial) Model.
- Fashion (Catalog) Model.
- Commercial Model.
- Mature Model.
- Promotional Model.
- Parts Model.
- Fit Model.
- Fitness Model.
Now you can use MS Excel to do final accounts and create financial statements like Income Statements, Balance Sheet, Cash Flow Statement and more. All excel templates are free to download and use.What are the different types of financial reports in MS Excel? ›
Examples of financial reports are balance sheets, income statements, cash flow statements, waterfall charts, and variance analysis.How do I write a statement of financial position? ›
The structure of the statement of financial position is similar to the basic accounting equation. For a corporation the format will be: Assets = Liabilities + Stockholders' Equity. A nonprofit organization's format will be: Assets = Liabilities + Net Assets.How do you format financial statements? ›
According to the Corporate Finance Institute, the basic financial statement format for an income statement states revenues first, followed by expenses. The expenses are subtracted from the revenue to calculate the net income of the business.
What is a financial statement form? ›
A personal financial statement is a snapshot of your personal financial position at a specific point in time. It lists your assets (what you own), your liabilities (what you owe), and your net worth. To get your net worth, subtract liabilities from assets.What is a financial presentation? ›
Financial presentations are all about data and numbers. The way you present this information is critical to getting your audience involved. The information presented should resonate with your audience, and at the end of the presentation, they should know the bottom line on what the numbers and data mean.Does Excel have a personal financial statement template? ›
The Simple Personal Finance Statement Template for Excel lets you calculate your net worth and present your financial statement when applying for a loan.What is a business financial statement? ›
Financial statements are a set of documents that show your company's financial status at a specific point in time. They include key data on what your company owns and owes and how much money it has made and spent.What are the 5 basic financial statements? ›
- Income statement. Arguably the most important. ...
- Cash flow statement. ...
- Balance sheet. ...
- Note to Financial Statements. ...
- Statement of change in equity.
Five elements of the financial statement include the balance sheet, income statement, statement of cash flow, statement of changes in equity, and the notes to the financial statements.What is a personal financial report? ›
What is a "personal financial report"? A statement of your personal financial status. What is "net worth"? The difference between your total assets and total liabilities.How do you present financials in an interesting way? ›
- Communicate the story behind the data. ...
- Follow the 10-20-30 rule. ...
- Hide your notes and bullet points. ...
- Make it picture perfect. ...
- Channel the pros. ...
- Arrange for discussion. ...
- Open and close. ...
- Make a financial presentation interesting.
- Give the Story Context. Like any good story, you need to set the scene before you start. ...
- Add Spice with Convincing Data Visualizations. ...
- Create a Sense of Urgency. ...
- Highlight the Takeaways. ...
- Propose a Plan. ...
- Summarize with a Forward-Looking Conclusion.
Financial Data in Pitch Decks Should Include Income, Expenses, and Business KPIs. These slides must succinctly outline the financial health of a company while projecting revenue potential in the future. Our research revealed the key metrics that investors are expecting to see and how they're expecting to see them.
How do you create a simple personal balance sheet? ›
How to Make a Personal Balance Sheet (free template) - YouTubeHow do I make a personal income statement? ›
- Pick a Reporting Period. ...
- Generate a Trial Balance Report. ...
- Calculate Your Revenue. ...
- Determine Cost of Goods Sold. ...
- Calculate the Gross Margin. ...
- Include Operating Expenses. ...
- Calculate Your Income. ...
- Include Income Taxes.