At the end of each fiscal year, it’s important to review the performance of your business. Year-end accounting reports offer useful metrics for evaluating performance and allow you to identify what you’re doing right and what you need to improve to help your business thrive and grow.
Which Are Must-Complete Year-End Reports?
- Year-end profit and loss report
- Balance sheet report
Year-End Profit and Loss Report
The year-end profit and loss report or “transitory accounts” summarises the incomes and expenses of a business for the year. You can use this report to find out how profitable your business is and determine the cost of running your business. This report also allows you to forecast your sales and expenses for the next fiscal year.
QuickBooks offers an already created profit and loss report. You simply click on the “Customise” button, click “Rows/Columns,” select “Columns” and choose year, and finally click “Run Report.” This report includes information, such as sales, operating costs, operating profit and overall profits.
As a small business owner, you can view the balance sheet report as a financial snapshot of your business. You can clearly see how much you own and how much you owe. Towards the bottom of the report, take note of the section labelled “Retained Earnings.” This line item tracks your company’s net worth over several years. Notice that your net profit for the fiscal year gets added to this total. In a nutshell, your balance sheet tells you whether your hard work throughout the year has paid off.
Running reports, tracking expenses and issuing payroll isn’t the best part of owning your own business, but you can make it easier without a lot of hassle. 4.3 million customers use QuickBooks. Join them today to help your business thrive for free.