Why are reports important? Because they tell the story of your business - whether it’s thriving or in need of further direction.

Staying in touch with your business numbers provides the insight you need to make better decisions for your business.

When reviewed regularly, a business’s financial reports can reveal opportunities to increase revenues, decrease costs and increase profitability. Increased profitability provides more opportunities for growth or perhaps to bring you closer to the day the day you choose to retire. Simply put, more opportunity means more choices to shape your future.

Keeping good records is essential for people in small business as the reports produced from your financial data helps you to manage your cash flow and make sound business decisions. As licensees of the Pure Bookkeeping System, the bookkeeping at Figure Flow ensures that your financial data is impeccable, thus ensuring an accurate flow of figures into your financial reporting.

All accounting systems are designed to enable the production of three types of financial reports. These reports are used together to present a complete picture of a business’s finances. They are:

The Profit and Loss Report

The Profit and Loss Report shows how much profit (or loss) a business has made over a particular period of time by totalling all of the revenues then deducting all of the expenses to arrive at a result (positive or negative).

The Balance Sheet

The Balance Sheet is one of the most important pieces of financial information available to a business. It provides a list of all the business owns less all that it owes to arrive at the owner’s equity (net worth) at that point in time.

The Cash Flow Statement

The Cash Flow Statement is one of the most important tools in managing your finances. It tracks all the money flowing in and out of your business and can reveal payment cycles or seasonal trends that require additional cash to cover payments. This cycle or pattern can help you plan ahead and make sure you always have money to cover your payments.

It is the Cash Flow Statement which answers the perennial question – If I am making a profit, WHY do I not have any money in the bank? The Cash Flow Statement is an essential financial statement for the business person who really wants to understand what is going on.