Financial reports are essential to know where you stand and where your business is heading. Xero has you covered with a variety of easy to understand reports that you can generate at any time. In fact, there are numerous reports available in Xero, but the truth is for most of us, we won’t need to use many of the them regularly. So which ones are the key ones for you to keep your eye on and check on regularly? Here are the top five basic financial reports you should regularly check in on in Xero:
Profit and Loss
This one is an obvious but vital report. Xero can help you generate this at any point and anyone keen on knowing how their business is doing should do so regularly. As long as you are keeping your Xero records up to date then this will give you a quick overview of how well the financial period is progressing and profitable your business is.
Aged Receivables
Key to any business is healthy cashflow. To keep cashflow healthy you need to keep the money coming in which means keeping on top of who owes you what. Checking this report will help you see just that and see who is now overdue so you can politely chase them for payment.
Aged Payables
To keep a good relationship with your suppliers you need to pay them on time. This report will help you see which bills are coming due. In addition, it will help you plan your cash as you can see when you will need to make larger cash outlays.
Budget Variance
If you are well-organised and are using Xero to the full, then you will have created a budget so you can track your income and expenses against your predictions and targets. The budget variance report will help you quickly see how well your actual figures are doing as compared with your budget. Keep your eye on this one and check it regularly.
Bank Reconciliation Summary
This one is a little boring, but nevertheless essential. Keeping your bank reconciled in Xero is fundamental to keeping your accounts up to date. This report can help you quickly see the unreconciled statement lines. You can then use it to update your books or send it to whoever is in charge of your bank reconciliation.
Want to Get More Out of Xero Reports?
Would you like to get more out of Xero and have a clearer picture of how your business is doing? Consider employing a bookkeeper to keep on top of things for you and pull out the data you need, when you need it. Here at Big Roc Bookkeeping we can look after your books and provide you with timely, up-to-date reports, so you can see the big picture and steer your business in the right direction. Please feel free to contact us or check out the services we offer here.
