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Chapter 6

How to create monthly financial reports

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Accountant & bookkeeper guides > How to do bookkeeping > How to create monthly financial reports

There are dozens of different financial and accounting reports that you could create. But there are a few favourites that bookkeepers like to check every month or two to make sure the business is performing.

What are financial reports?

Figure 6, Reports that may be produced on a monthly basis to keep an eye on the financials.

Why does it matter?

Taken together, these reports tell you what your business is worth, how profitable it is, and if it has enough money coming in to keep trading. 

The results can affect everything from your spending plans to pricing, forecasts, and customer payment terms. And, of course, the year-end versions of these reports show how much income tax you need to pay.

Who creates financial reports?

Monthly reports are traditionally created by a bookkeeper to help keep tabs on the business. The end-of-year reports tend to be created by an accountant, with a view to minimising tax and setting financial strategies for the year ahead.

How to create financial reports


If you were creating reports manually, here’s what you’d need to do. 

Modern monthly financial reporting

Bookkeeping software has made it possible for anyone to generate these reports at the press of a button. However, you first need to make sure all the numbers have been entered, coded to the correct account, and reconciled. 

Some of these reports can be shown on a live dashboard in real time, which updates every day.

The year-end reports are generally prepared by an accountant, who may make some final adjustments to ensure the business doesn’t pay more tax than required.

Chapter 8: How to do payroll

Paying employees is reasonably simple. But working out deductions and keeping reports for the tax office is not. Learn what happens when.

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