Running a small business is about more than providing great products or services—it’s about keeping a clear eye on your numbers. The truth is, even profitable businesses can run into trouble without proper financial oversight. That’s why every owner should regularly review a few key reports to stay on top of performance, cash flow, and long-term growth.
At Capital Crafters, we help Northern Nevada businesses gain financial clarity through accurate bookkeeping and reporting. Whether you’re using QuickBooks, Xero, Sage, or NetSuite, these five financial reports will give you the insights you need to make confident business decisions month after month.
Your profit and loss statement—also known as an income statement—is one of the most important tools in your financial toolkit. It shows how much your business earned and spent over a specific period, typically broken down by month.
By reviewing your P&L monthly, you can:
For example, if you notice expenses rising faster than revenue, it might be time to tighten spending or re-evaluate pricing. Our team at Capital Crafters helps clients interpret these statements so they understand not just what’s happening—but why.
Pro tip: Compare your current P&L to previous months or the same month last year to see how your business is trending over time.
While the profit and loss statement shows performance, the balance sheet reveals your company’s financial position at a given moment. It’s essentially a snapshot of what your business owns and owes.
A standard balance sheet includes three main sections:
Reviewing your balance sheet monthly helps ensure that your assets are growing and your liabilities remain manageable. It also helps you monitor debt levels and working capital, which are crucial for maintaining financial stability.
At Capital Crafters, we walk clients through their balance sheets to show how their financial position changes month to month—turning complex data into simple, actionable insights.
Even profitable businesses can run into cash flow problems if money isn’t coming in at the right time. That’s why your cash flow statement is critical. It tracks how cash moves in and out of your business—through operations, investing, and financing activities.
By reviewing this report monthly, you can:
For example, a contractor might show a healthy profit on paper but struggle to pay bills if clients delay payments. A cash flow statement highlights these timing issues, helping you plan accordingly.
Capital Crafters helps small businesses create clear, accurate cash flow reports so they always know where they stand and can avoid surprises.
Late payments can quietly erode your cash flow and create serious strain on your operations. That’s why every small business owner should review an accounts receivable aging report each month.
This report categorizes unpaid invoices by how long they’ve been outstanding—typically in 30-day intervals. It helps you identify:
Consistent follow-up based on this report can dramatically improve your cash position. At Capital Crafters, we use this tool to help clients stay proactive, ensuring that unpaid invoices don’t slip through the cracks.
Pro tip: Automate your invoicing and payment reminders using platforms like QuickBooks or Xero to speed up collections and keep accounts current.
A budget vs. actual report compares your projected financial performance against what actually happened. It’s an invaluable tool for assessing how well your business is meeting its financial goals and where adjustments are needed.
Each month, review this report to:
For example, if marketing expenses are higher than expected but driving more revenue, that could justify an increase in your marketing budget. If certain costs are rising without clear results, it may be time to reevaluate.
At Capital Crafters, we help business owners build budgets they can actually use—not just spreadsheets that collect dust. We’ll help you align your spending with your goals and track performance so you can grow strategically.
Monthly financial reviews don’t just help you stay organized—they empower you to run your business proactively instead of reactively. Here’s what consistent reporting does for you:
At Capital Crafters, we believe that understanding your numbers is the foundation of every successful business. Our bookkeeping services provide clarity, accuracy, and peace of mind so you can focus on what you do best—running your company.
Capital Crafters isn’t a national chain or an online-only firm—we’re local professionals who understand the financial landscape of Northern Nevada. From Reno to Carson City, we work with small business owners who want bookkeeping that’s personal, reliable, and tailored to their needs.
Here’s what our clients love about working with us:
Whether you’re managing a construction company, a rental business, or a local service operation, we’ll customize our bookkeeping approach to match your systems and goals.
Understanding your finances shouldn’t feel like decoding a puzzle. With accurate monthly reporting, you can see exactly where your business stands and where it’s headed.
The five financial reports above—the Profit and Loss Statement, Balance Sheet, Cash Flow Statement, Accounts Receivable Aging Report, and Budget vs. Actual Report—are essential tools for every small business owner who wants to grow with confidence.
Capital Crafters makes it easy to stay on top of these reports through consistent bookkeeping, personalized guidance, and clear communication.
If you’re ready to take control of your finances and gain true visibility into your business, contact Capital Crafters today. Let’s simplify your books, strengthen your insights, and help you make informed decisions month after month.
Contact us today for a free consultation.
