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Bookkeeping Australia - Reports to See If Your MicroBusiness is Making Money! Business Articles | June 3, 2010
If you run a Micro Small Business Australia you need to monitor your business progress. One of the best ways to do this is to keep up to date with your bookkeeping data entry so you can produce financial reports that show your business results each month.
The Profit & Loss report is the holy grail of reports, it tells you if you are making money or not! ?This report shows your Income and Expenses for your micro business. ?
You can review your different income streams and expense accounts to see your most profitable areas of income and highest cost centers.
For example
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A Profit & Loss report always represents a period of time, for example for the period 1st Jan to 31st Jan. You can prepare this report for a month, 3 months or the whole year.
The aim of reviewing the Profit & Loss report is firstly to see if your business is making money. ?But, once you have access to your profit and loss reports for a few months you can then use the information to plan a budget and calculate your business? breakeven point.
A budget is an estimate of your business income and expenses. ?Usually you have a reasonable idea of what your business expenses will be
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A Breakeven Report will tell you how much income you need to make to simply cover your business expenses, before you actually make any profit from the Business. The Breakeven report combined with a Budget are valuable Business Planning tools.
For more information on managing the bookkeeping and adminstration systems for your MicroBusiness see
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