The best Xero Reports to run for managing your business
EPISODE 95
Notes
As we kick off the new year, it's a perfect time to explore the power of Xero Reports for managing your business effectively. In this episode, I’m diving into the most useful Xero Reports that every business owner should consider running regularly. These reports will provide valuable insights into your financial performance, cash flow, and overall business health.
1. Profit and Loss (P&L) Report:
The Profit and Loss report, also known as the P&L, is the ultimate report for assessing a business's financial performance over a 12-month period. It shows revenue, expenses, and ultimately the profit or loss of your business. I recommend running this report regularly, at least monthly, to give you a clear picture of your profit situation and help you identify areas for improvement.
2. Balance Sheet Report:
The Balance Sheet report showcases the financial position of your business by displaying your assets, liabilities, and equity. It helps you understand the health of your business and ensure that your bookkeeping is accurate. By reviewing this report monthly, you can identify any inconsistencies in coding or liabilities that require attention.
3. Aged Receivables Detail Report:
The Aged Receivables Detail report is crucial for monitoring unpaid invoices from your customers. This report is one not to ignore as it will help you identify overdue invoices that need follow-up for payment. It also helps you investigate any anomalies, such as incorrect coding or missing payments.
4. Aged Payables Detail Report:
Similar to the Aged Receivables report, the Aged Payables Detail report focuses on unpaid supplier bills. By entering bills into Xero before they are paid, you can use this report to manage cash flow more effectively. It allows you to plan for upcoming payments and keep track of outstanding bills.
5. Budget Variance Report:
Having a budget is essential for tracking your financial goals and ensuring that you stay on track. The Budget Variance report helps you compare your actual financial results against your budgeted goals. By regularly reviewing this report, you can identify areas where you are exceeding or falling short of your budgeted targets.
I also share some often overlooked Xero reports which can be really useful in running your business and I highly recommend you check these out and take the time to explore each report's features. With accurate bookkeeping and diligent reviewing of these reports, you will make informed decisions, set achievable goals, and drive your business towards success.
LINKS:
Register your interest in the Bookkeeping it Real Mentoring Program here.
About the
Author
Bec is a chartered accountant who worked at Australia’s big firms and banks for 15-years. Faced at a crossroads in her career, she backed herself, left her corporate job and launched Straight Up Bookkeeping. 3 years and 5 staff later, Straight Up Bookkeeping is one of Australia’s leading virtual bookkeeping businesses for creatives, with a mission to free business owners from financial stress so they can grow their empires.
Recent Episodes
